Western Digital (NYSE: WDC) has disclosed that on November 18, 2011, an arbitration award of $525 million was rendered against the company, which they intend to challenge vigorously. The confidential arbitration took place in Minnesota, and while details are very thin, WD did reveal that the award involves claims brought by Seagate against WD and an employee who used to work for Seagate. Seagate alleged there was an misuse of confidential information and trade secrets. A sole arbitrator agreed, awarding Seagate $525 million.
Western Digital (NYSE: WDC) has disclosed that on November 18, 2011, an arbitration award of $525 million was rendered against the company, which they intend to challenge vigorously. The confidential arbitration took place in Minnesota, and while details are very thin, WD did reveal that the award involves claims brought by Seagate against WD and an employee who used to work for Seagate. Seagate alleged there was an misuse of confidential information and trade secrets. A sole arbitrator agreed, awarding Seagate $525 million.
"We do not believe there is any basis in law or fact for the damage award of the arbitrator," said John Coyne, president and chief executive officer. "We believe the company acted properly at all times and we will vigorously challenge the award. This does not affect our ability to conduct our operations, to complete the recovery and recommencement of our Thailand operations or, subject to obtaining the required regulatory approvals, to consummate our planned acquisition of Hitachi GST."
