Seagate agrees in principle to pay $175 million to settle securities class action over Huawei sales

Seagate reached an agreement in principle on April 3, 2026 to settle a securities class action in the Northern District of California. The class alleged that the company's hard drive sales to Huawei broke US export restrictions and were not disclosed to investors. The total settlement is $175 million; Seagate recorded a $105 million charge and expects about $70 million to be covered by insurers.

• Settlement amount: $175 million, subject to court approval
• Charge recorded: $105 million in legal settlement expense
• Expected insurance recovery: about $70 million
• Case relates to undisclosed hard drive sales to Huawei alleged to breach US export rules