Robbins Geller Rudman & Dowd LLP, a prominent law firm specializing in investor class actions, has announced the filing of a class action lawsuit against Seagate Technology Holdings plc. The lawsuit aims to represent purchasers of Seagate's common stock during the period from September 15, 2020, to October 25, 2022. Alleging violations of the Securities Exchange Act of 1934, the lawsuit targets Seagate and certain top executives. If you have incurred substantial losses and wish to participate as a lead plaintiff, find more information and contact details below.

‍

The Class Action Lawsuit

Captioned UA Local 38 Defined Contribution Pension Plan v. Seagate Technology Holdings plc, the class action lawsuit has been filed in the U.S. District Court for the Northern District of California (No. 23-cv-3:23-cv-03431). The allegations revolve around Seagate's actions during the specified Class Period, accusing the company and its executives of violating securities laws.

‍

Seagate's Role as a Leading Data Storage Supplier

Seagate, a renowned global supplier of data storage products, including hard disk drives (HDDs), holds a prominent position in the industry. During the Class Period, Huawei Technologies Co. Ltd., a major Chinese multinational technology firm, emerged as a significant purchaser of data storage products from Seagate and other U.S.-based suppliers. However, Huawei and some non-U.S. affiliates were added to the U.S. Department of Commerce Bureau of Industry and Security's Entity List on May 16, 2019. This designation imposed specific license requirements on export, re-export, and transfer activities involving these entities.

‍

Allegations of False and Misleading Statements

According to the class action lawsuit, defendants throughout the Class Period made false and/or misleading statements or failed to disclose crucial information. The lawsuit claims that Seagate failed to disclose the true nature and scale of its HDD sales to Huawei following the BIS export rules and subsequent actions taken against Huawei. Notably, Seagate experienced a significant surge in sales to Huawei when its competitors ceased selling to the company due to the new regulations. The lawsuit further alleges that Seagate's HDD manufacturing process, including the utilization of covered U.S. software and technology, violated the BIS export rules. Consequently, Seagate faced an ongoing investigation by the U.S. Department of Commerce, exposing it to substantial fines and penalties.

‍

The Impact on Seagate's Stock

On October 26, 2022, Seagate disclosed that it had received a Proposed Charging Letter from the BIS, accusing the company of violating the EAR by providing HDDs to a customer and its affiliates listed on the BIS Entity List between August 2020 and September 2021. This announcement resulted in a nearly 8% decline in Seagate's stock price, causing significant harm to investors. Over the following three trading days, Seagate's stock price continued to decline by an additional nearly 7%.

‍

Lead Plaintiff and Legal Representation

Robbins Geller, a highly experienced law firm in prosecuting investor class actions, is representing the plaintiff in this case. If you believe you have a claim and wish to participate as a lead plaintiff, you must file a lead plaintiff motion with the court no later than September 8, 2023. The lead plaintiff, who represents the putative class, possesses the greatest financial interest in the lawsuit's relief and is typical and adequate of the class. Being a lead plaintiff does not impact an investor's ability to share in any potential future recovery of the class action lawsuit.

‍

For inquiries or to contact attorney J.C. Sanchez of Robbins Geller, call 800/449-4900 or email jsanchez@rgrdlaw.com.