Seagate Awarded $525 million in Arbitration with Western Digitalby Amman Sood on November 21, 2011 2:00 PM EST
Western Digital announced today in a press release that the arbitrator for a Seagate vs. Western Digital complaint sided with Seagate and ordered an award of $525 million paid to Seagate. The arbitration was initiated when Seagate alleged misappropriation of confidential information and trade secrets by Western Digital once a Seagate employee defected to Western Digital.
CEO John Coyne intends on challenging this award, stating that WD believes “the company acted properly at all times” and adding that the ruling “does not affect our ability to conduct our operations, to complete the recovery and recommencement of our Thailand operations”.
Along with most other hard drive manufacturers such as Toshiba, Hitachi, and of course Seagate, Western Digital is suffering losses after major flooding recently struck Thailand operations. DigiTimes reported that Seagate anticipates a 10-18% reduction in hard drive output as a result of the flooding, with other manufacturers surely similarly affected, resulting in a hard drive shortage for the coming months.
Source: Press Release