8-KRegulation FDExhibits & Filings

WESTERN DIGITAL CORP 8-K Report, Regulation FD Disclosure (Aug 7, 2017)

Filed August 7, 2017For Securities:WDC

Summary

This 8-K filing from Western Digital Corporation (WDC) on August 7, 2017, addresses a significant legal development related to its SanDisk subsidiary and its joint ventures with Toshiba Corporation. The Superior Court of California has extended a temporary restraining order in favor of SanDisk, aiming to prevent Toshiba from restricting employee access to shared databases and withholding essential engineering wafers and samples. This action is critical for the uninterrupted operation of their three NAND flash-memory joint ventures. The company views this extension as a positive step towards ensuring business continuity and protecting its interests in these crucial partnerships. Investors should monitor the ongoing legal proceedings and Toshiba's response, as the outcome could materially impact Western Digital's supply chain and manufacturing capabilities for NAND flash memory, a key component in their products. The company's proactive legal measures indicate the seriousness of the situation and its commitment to safeguarding its operational integrity within the joint ventures.

Key Highlights

  • 1Superior Court of California extended a temporary restraining order in favor of Western Digital's SanDisk subsidiary.
  • 2The restraining order aims to prevent Toshiba Corporation from blocking employee access to shared databases.
  • 3The order also seeks to ensure Toshiba ships engineering wafers and samples necessary for joint venture operations.
  • 4This legal action is crucial for the uninterrupted operation of three NAND flash-memory joint ventures between WDC and Toshiba.
  • 5Western Digital is pursuing a preliminary injunction to formalize these protections.
  • 6The filing indicates WDC's proactive stance in protecting its interests within the joint ventures.

Frequently Asked Questions

Western Digital, through its SanDisk subsidiary, is in a legal dispute with Toshiba Corporation regarding the operation of their NAND flash-memory joint ventures. Toshiba was allegedly prohibiting certain employees from accessing shared databases and refusing to ship engineering wafers and samples, which are essential for the joint ventures' operations.

The Superior Court of California extended a temporary restraining order previously granted to SanDisk. This extension means that, for now, Toshiba is prohibited from taking the actions (blocking database access and withholding shipments) that are disrupting the joint ventures. The court's decision is a temporary measure pending a ruling on a preliminary injunction.

This dispute could significantly impact Western Digital's supply chain and manufacturing operations for NAND flash memory, a critical component in many of their products. If Toshiba were to continue withholding essential materials or access, it could lead to production delays, increased costs, and potential lost revenue.

Western Digital is seeking to ensure the uninterrupted operations of the NAND flash-memory joint ventures. Specifically, they want to compel Toshiba to allow employee access to shared databases and to resume shipping engineering wafers and samples. They are pursuing a preliminary injunction to make these protections more permanent while the broader legal proceedings continue.