Summary
Western Digital Corporation (WDC) has filed an 8-K report detailing a significant legal development concerning an arbitration award dispute with Seagate Technology, LLC. The Minnesota Court of Appeals has reversed a lower court's decision, effectively reinstating a $630.4 million arbitration award in favor of Western Digital. This award primarily relates to claims of trade secret misappropriation against WDC and a former employee, where WDC had initially won on five out of eight claims. The company, however, strongly disagrees with the Appellate Court's ruling and intends to petition for review with the Minnesota Supreme Court. Should the higher court decline to review the case or uphold the Appellate Court's decision, a final judgment confirming the $630.4 million award, plus significant post-award interest on a portion of it, is expected. This ongoing legal battle has the potential for a substantial financial impact on the company, depending on the outcome of further appeals.
Key Highlights
- 1Minnesota Court of Appeals reversed a lower court's decision regarding a $630.4 million arbitration award dispute with Seagate Technology, LLC.
- 2The Appellate Court's decision remands the case for entry of an order and judgment confirming the arbitration award.
- 3Western Digital Corporation (WDC) had previously won five out of eight trade secret misappropriation claims against Seagate in the arbitration.
- 4The District Court had initially vacated the award for the three claims WDC lost and ordered a rehearing, a decision now overturned.
- 5WDC strongly disagrees with the Appellate Court's decision and plans to petition the Minnesota Supreme Court for review.
- 6The arbitration award includes $630.4 million, with potential post-award interest on $525 million at a 10% statutory rate from January 24, 2012, if the award is ultimately confirmed.
- 7No judgment will be entered while WDC is petitioning the Minnesota Supreme Court for review.