Gaming PC

Seagate Faces Class Action Lawsuits After Violating US Sanctions by Selling to Huawei

Hard disk drive maker Seagate was recently fined $300 million by the U.S. Department of Commerce for violating U.S. sanctions that imposed export controls on products sold to Huawei, but this may be just the tip of the iceberg. Over the past two weeks, a number of law firms have filed class action lawsuits against Seagate on behalf of shareholders who claim the company was mistaken for selling millions of hard drives to the banned Huawei.

These sales totaled $1.1 billion, with Seagate’s estimated profit of $150 million. After paying $300 million for this breach, the price will be higher as Seagate goes through a class action lawsuit alleging that it made materially false and/or misleading statements to shareholders regarding its dealings with Chinese tech companies.

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