Uploaded by FinancialNewsOnline on Nov 21, 2011
Western Digital (NYSE:WDC) reported that on November 18, an arbitration award of $525 million was rendered against the company by a sole arbitrator in a pending confidential arbitration action in Minnesota.
The amount of the award does not include prejudgment interest, which will be subsequently determined. The award involves claims brought by Seagate Technology LLC (NASAQ:STX) against WD and one employee who was formerly employed by Seagate, alleging misappropriation of confidential information and trade secrets.
CEO John Coyne said in a statement, "We do not believe there is any basis in law or fact for the damage award of the arbitrator. We believe the company acted properly at all times and we will vigorously challenge the award. This does not affect our ability to conduct our operations, to complete the recovery and recommencement of our Thailand operations or, subject to obtaining the required regulatory approvals, to consummate our planned acquisition of Hitachi GST."
Western Digital (NYSE:WDC) has potential upside of 31.3% based on a current price of $25.45 and an average consensus analyst price target of $33.43.
The amount of the award does not include prejudgment interest, which will be subsequently determined. The award involves claims brought by Seagate Technology LLC (NASAQ:STX) against WD and one employee who was formerly employed by Seagate, alleging misappropriation of confidential information and trade secrets.
CEO John Coyne said in a statement, "We do not believe there is any basis in law or fact for the damage award of the arbitrator. We believe the company acted properly at all times and we will vigorously challenge the award. This does not affect our ability to conduct our operations, to complete the recovery and recommencement of our Thailand operations or, subject to obtaining the required regulatory approvals, to consummate our planned acquisition of Hitachi GST."
Western Digital (NYSE:WDC) has potential upside of 31.3% based on a current price of $25.45 and an average consensus analyst price target of $33.43.
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