Twersky Law Group, a highly regarded and reputable law firm based in New York, wishes to inform investors about a significant development in the form of a class action lawsuit against Seagate Technology Holdings (“Seagate” or “the Company) (NASDAQ: STX) and certain officers of the company. This lawsuit has been filed on behalf of all individuals and entities that held, purchased, or otherwise acquired Seagate securities from September 15, 2020 through October 25, 2022 (the “Class Period”). Investors who acquired Seagate securities during this defined timeframe are strongly encouraged to participate in this case by contacting atara@twerskylawgroup.com. The deadline to file a motion for appointment of lead plaintiff is September 8, 2023.
The fundamental objective of this class action lawsuit is to recover for the benefit of investors who purchased Seagate securities during the Class Period, the losses they sustained as a consequence of the misleading statements made by Defendants in violation of the federal securities laws.
ALLEGATIONS AGAINST SEAGATE TECHNOLOGY HOLDINGS PLC
Seagate is a leading global supplier of data storage products, including hard disk drives (HDDs). By the start of the Class Period, Huawei Technologies Co. Ltd. (Huawei), a Chinese multinational technology, had emerged as a significant global purchaser of data storage products, including HDDs, produced by Seagate and other U.S.-based suppliers. On May 16, 2019, Huawei and certain of its non-U.S. affiliates were added to the U.S. Department of Commerce Bureau of Industry and Securitys (BIS) Export Administration Regulations (EAR) Entity List (Entity List). The EAR Entity List is a list of names of certain foreign persons and entities that are subject to specific license requirements for the export, re-export, and/or transfer (in-country) of specified items. The Entity List designation was based on a determination made by multiple U.S. government agencies that there is reasonable cause to believe that Huawei has been involved in activities contrary to the national security or foreign policy interests of the United States. Then, on August 17, 2020, the BIS imposed export controls over certain foreign-produced items to better address the continuing threat to U.S. national security and U.S. foreign policy interests posed by Huawei and its non-U.S. affiliates. As the Seagate class action lawsuit alleges, defendants throughout the Class Period made false and/or misleading statements and/or failed to disclose: (i) the nature and magnitude of Seagate’s HDD sales to Huawei, including that Seagate experienced a significant acceleration in sales to Huawei immediately after the BIS rules went into effect and Seagates competitors stopped selling to Huawei; and (ii) that the underlying details of Seagate HDD manufacturing process, including the use of covered U.S. software and technology in essential production processes, rendered its sales to Huawei in violation of the BIS export rules As a result, Seagate was in blatant violation of the BIS export rules which resulted in an ongoing investigation by the U.S. Department of Commerce and exposed Seagate to hundreds of millions of dollars in fines and penalties. On October 26, 2022, Seagate disclosed that it received a Proposed Charging Letter from the BIS alleging that Seagate violated the EAR by providing Seagate HDDs to a customer and its affiliates listed on the BIS Entity List between August 2020 and September 2021. On this news, the price of Seagate common stock fell nearly 8%, damaging investors. Over the following three trading days, Seagates stock price continued to drift lower, falling an additional nearly 7%.
ABOUT SEAGATE TECHNOLOGY HOLDINGS PLC
What does Seagate Technology do?
- Seagate Technology is a leading manufacturer of data storage solutions. The company designs, manufactures, and sells a wide range of storage devices, including hard disk drives (HDDs), solid-state drives (SSDs), and network-attached storage (NAS) systems. Seagate’s products are used in various applications such as personal computers, laptops, data centers, gaming consoles, and enterprise storage systems. The company provides storage solutions for both consumer and business markets, focusing on reliability, performance, and capacity to meet the ever-increasing demand for data storage.
Who owns Seagate Technology Holdings PLC?
- Seagate is owned by 87.20% institutional shareholders, 646.47% Seagate Technology Holdings insiders, and 0.00% retail investors. Currently, Stephen J. Luczo is the largest individual Seagate Technology Holdings shareholder, owning 327.01M shares representing 157.91% of the company.
JOIN THIS CASE
It is important to note that a class action lawsuit has already been filed in connection with these allegations. Therefore, for those who suffered financial losses in their investments in Seagate during the Class Period, there is a limited opportunity to seek appointment as a lead plaintiff. This process entails requesting the Court to designate them as the primary representative on behalf of the entire Class. The deadline for submitting such a request is September 8, 2023. It is important to emphasize that while becoming a lead plaintiff can offer certain advantages, participation in the recovery process and the potential for financial compensation does not mandate serving as a lead plaintiff.
Twersky Law Group, a distinguished legal firm renowned for its attorneys expertise in handling securities fraud class actions and shareholder derivative suits, who have a long-standing track record of successfully recovering significant sums of money for investors nationwide. With an unwavering commitment to seeking justice for their clients, the firm’s attorneys are resolute in pursuing fair compensation on behalf of those affected by alleged securities law violations. As with any legal matter, it is essential to understand that this announcement constitutes attorney advertising. Past case outcomes and results achieved do not guarantee similar outcomes in this particular case.
Investors who believe they may qualify as potential Class members in the class action lawsuit against Seagate are strongly encouraged to reach out directly to the firm for further information and assistance. The knowledgeable legal professionals at Twersky Law Group stand ready to provide guidance and support to investors seeking to protect their rights and pursue the recovery they deserve.
ABOUT US
For more information as well as to join this case please contact Atara Twersky, Esq. at atara@twerskylawgroup.com. Atara is Principal at Twersky Law Group and of counsel at AF&T Law Firm where she is director of Investor Services. Atara focuses her practice on assisting her clients with increasing their investment portfolio recoveries and ensuring that their portfolios remain healthy and robust. For more information on shareholder recoveries, listen to Atara ’s Pension and Investments Podcast with notable guests in the pension fund Industry that discusses various matters relating to investment portfolios. For more information on Atara and her legal work pertaining to shareholder protection click here.
