Seagate Technology (STX)

[$UPERMAN]

Seagate Technology Reports Arbitration Decision

Seagate Technology. (MM) (NASDAQ:STX)

Today : Tuesday 22 November 2011
Seagate Technology today reported that, on November 18, 2011, an arbitrator in a binding arbitration in Minnesota issued an interim award that Seagate is entitled to recover compensatory damages of $525 million, plus pre-award interest on the compensatory damage award at the rate of 10% per year, from Western Digital Corporation and a Western Digital employee who was formerly employed by Seagate, in a case involving claims for trade secret misappropriation, breach of contract and other related claims.

The arbitrator has requested additional briefing from the parties regarding the amount of the pre-award interest. Upon determination of the amount of pre-award interest, the arbitrator will issue a final award. After the arbitrator issues the final award, Seagate will request that the Hennepin County District Court of Minnesota (the “Court”) confirm the arbitration award and enter judgment in the amount of the final award.

This matter began as a lawsuit filed by Seagate against Western Digital and its employee in the Court in October 2006. In September 2007, the Court ordered that the lawsuit be stayed pending arbitration.