Seagate Technology has agreed to pay $175 million to settle a class action lawsuit alleging the company misled investors about its sales of hard disk drives to China’s Huawei Technologies following tightened U.S. export controls.
The proposed settlement was filed late on May 29 in federal court in San Francisco and requires approval from U.S. District Judge Rita F. Lin.
The lawsuit covers investors who purchased Seagate shares between Sept. 14, 2020, and April 19, 2023. Lead plaintiffs include pension funds from Arkansas, Mississippi, Germany, and Luxembourg.
Shareholders alleged that Seagate, Chief Executive Dave Mosley, and Chief Financial Officer Gianluca Romano failed to adequately disclose the extent and risks of the company’s business with Huawei after changes were made to U.S. export regulations….