updated 04:30 pm EST, Mon November 21, 2011
Company to challenge pending arbitration ruling
Western Digital has revealed that on Friday an arbitrator ruled against the company in a dispute between itself and rival Seagate over alleged misappropriation of confidential information and trade secrets. The preliminary award is for $525 million, not including any prejudgement interest. WD plans on challenging the award.
The claim was brought by Seagate against WD and a WD employee who had previously worked for Seagate. Rather than a trial, both parties entered into confidential arbitration in Minnesota. The case was heard by a single arbitrator.
John Coyne, WD's president and CEO, however, has stated that the company will "vigorously" challenge the ruling. He went on to say that the outcome of the arbitration does not impact the company's ongoing operation, its ability to resume its Thailand operations, which were affected by recent flooding, or WD's planned $4.3 billion acquisition of Hitachi's drive group, which was announced last March.