INVESTOR ALERT: Edelson Lechtzin LLP Urges Seagate Technology Holdings plc (NASDAQ: STX) Shareholders with Substantial Losses to Consider Seeking Leadership in the Securities Fraud Class Action
NEWTOWN, PA, August 4, 2023 — The law firm of Edelson Lechtzin LLP is investigating securities fraud claims on behalf of all purchasers and holders of Seagate Technology Holdings plc (NASDAQ: STX) common stock between September 15, 2020, and October 25, 2022, both dates inclusive (the “Class Period”).
Investors who purchased Seagate Technology Holdings plc common stock may move the U.S. District Court for the Northern District of California to appoint them as lead plaintiff, no later than September 8, 2023. Current holders of Seagate stock may pursue corporate governance reforms. Please contact Edelson Lechtzin LLP at 844-696-7492 to discuss your investment losses, or by e-mail at [email protected]. A copy of the class action complaint can be viewed HERE.
Background on Seagate Technology Holdings plc
Seagate Technology, which maintains its operational headquarters in Fremont, California, provides reliable and secure data storage solutions to businesses and individuals worldwide.
The Securities Fraud Claims
Huawei, a Chinese multinational technology corporation, emerged as a significant global purchaser of data storage products, including hard disk drives (HDDs), from Seagate and other U.S.-based suppliers at the start of Class Period.
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 Security’s (“BIS”) Export Administration Regulations (“EAR”) Entity List (“Entity List”). 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 on foreign-produced items to address the national security and foreign policy threat posed by Huawei and its non-U.S. affiliates.
The complaint alleges that throughout the Class Period, Defendants made materially false and/or misleading statements and/or material omissions regarding the Company’s business, operations, and prospects, including that: (i) the nature and magnitude of Seagate’s HDD sales to Huawei, experienced a significant acceleration in sales to Huawei immediately after the BIS rules went into effect and Seagate’s competitors stopped selling to Huawei; and (ii) the underlying details of Seagate’s 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 violation of the BIS export rules, and subjected the Company to an investigation by the U.S. Department of Commerce and exposed the Company to hundreds of millions of dollars in fines and penalties.
On October 26, 2022, Seagate disclosed in a Form 8-K that they had received a Proposed Charing Letter from the BIS, which alleged that they had violated the EAR regulations by providing HDDs to a customer and its affiliates listed on the BIS Entity List. On this news, the price of Seagate common stock fell by nearly 8% to close at $53.39 on October 26, 2022, on unusually heavy trading volume. Over the following three days, Seagate’s stock price continued to fall, nearly 7%, to close at $49.66 on October 31, 2022.
For more information, please contact:
Marc H. Edelson, Esq.
Eric Lechtzin, Esq.
EDELSON LECHTZIN LLP
411 S. State Street, Suite N-300
Newtown, PA 18940
Phone: 844-696-7492 or 215-867-2399 ext. 1
Email: [email protected]
Email: [email protected]
Edelson Lechtzin LLP is a national class action law firm with offices in Pennsylvania and California. In addition to cases involving securities and investment fraud, our lawyers focus on class and collective litigation in cases alleging violations of the federal antitrust laws, employee benefit plans under ERISA, wage theft and unpaid overtime, consumer fraud, and data breaches.
This press release may be considered Attorney Advertising in some jurisdictions. No class has been certified in this case, so you are not represented by counsel unless you retain one. You may select counsel of your choice. You may also remain an absent class member and do nothing at this point. Your ability to share in any potential future recovery is not dependent upon serving as lead plaintiff.