Seagate Technology has reached a $175 million settlement in a class-action lawsuit. Shareholders accused the hard drive maker of concealing that it violated US export laws by selling over $1.1 billion in drives to China's Huawei Technologies.
The proposed settlement, filed in San Francisco federal court, requires judicial approval. Seagate denied wrongdoing but set aside $105 million for the deal, estimating insurers would cover $70 million.
The case stems from Seagate shipping more than 7.4 million hard disk drives to Huawei after the US government blacklisted the telecom giant in 2019. In April 2023, the Commerce Department fined Seagate a record $300 million civil penalty.
Shareholders claimed the company inflated its profit and stock price by not disclosing the risks. Lead plaintiffs include pension funds from Arkansas, Mississippi, Germany, and Luxembourg. Attorneys for the class may seek up to 25% of the settlement for fees.