SAN FRANCISCO, May 04, 2023 (GLOBE NEWSWIRE) -- Hagens Berman urges Seagate Technology Holdings plc (NASDAQ: STX) investors who suffered substantial losses to submit your losses now.
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Seagate Technology Holdings plc (STX) Investigation:
The investigation focuses on Seagate’s past assurances that it complied with the U.S. Export Administration Regulations (“EAR”), including all requirements against doing business with companies that federal agencies believe represent national security and foreign policy threats to the U.S. These companies are contained in the U.S Commerce Department’s Bureau of Industry and Security (“BIS”) Entity List.
On Oct. 26, 2022, Seagate revealed that, on Aug. 29, 2022, it received a Proposed Charging Letter from BIS alleging violations of the EAR by providing Seagate hard disk drives (“HDDs”) to a customer on the BIS Entity List between Aug. 2020 and Sept. 2021.
Nonetheless, Seagate assured investors that “it did not engage in prohibited conduct.”
Then, on Apr. 19, 2023, BIS announced Seagate agreed to pay “the largest standalone penalty in BIS history” ($300 million) to settle BIS’ claims that Seagate illegally shipped more than 7.4 million HDDs, valued at about $1.1 billion, to Huawei (a company that has been on the Entity List since May 2019).
Assistant Secretary for Export Enforcement Matthew Axelrod said, “Even after Huawei was placed on the Entity List for conduct inimical to our national security, and its competitors had stopped selling to them due to our foreign direct product rule, Seagate continued sending hard disk drives to Huawei.”
Then, on Apr. 20, 2023, Seagate announced that its board of directors reduced salaries for CEO (William D. Mosley) and CFO (Gianluca Romano) by 100% for a period of six months.
These events sent the price of Seagate shares sharply lower.
“We’re focused on investors’ losses and whether Seagate recorded illegal revenues when putting profits over U.S. national security interests,” said Reed Kathrein, the Hagens Berman partner leading the investigation.
If you invested in Seagate and have substantial losses, or have knowledge that may assist the firm’s investigation, click here to discuss your legal rights with Hagens Berman.
Whistleblowers: Persons with non-public information regarding Seagate should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Reed Kathrein at 844-916-0895 or email STX@hbsslaw.com.
About Hagens Berman
Hagens Berman is a global plaintiffs’ rights complex litigation law firm focusing on corporate accountability through class-action law. The firm is home to a robust securities litigation practice and represents investors as well as whistleblowers, workers, consumers and others in cases achieving real results for those harmed by corporate negligence and fraud. More about the firm and its successes can be found at hbsslaw.com. Follow the firm for updates and news at @ClassActionLaw.
Contact:
Reed Kathrein, 844-916-0895
