Hard disk drive maker Seagate was recently slapped with a $300 million fine by the U.S. Department of Commerce for violating US sanctions that applied export controls on products sold to Huawei, but that may be just the tip of the iceberg. Over the course of the last two weeks, a slew of law firms have filed class action suits against Seagate on behalf of shareholders who allege they were misled about the company selling millions of hard drives to the banned Huawei.
Those sales totaled $1.1 billion in revenue, of which Seagate profited an estimated $150 million. After paying $300 million for that transgression, the toll will become higher as the class action proceeds, alleging that Seagate made materially false and/or misleading statements to its shareholders about its business dealings with the Chinese tech company.
