Seagate Facing Illegal Export Charges
Federal government believes Seagate illegally exported hard drives for more than year.
October 28, 2022
In its latest quarterly filing, Seagate Technology Holdings (STX), a data storage maker, revealed it is on the cusp of being charged with illegally exporting hard disk drives (HDDs). The company received a proposed charging letter (PCL) from the U.S. Commerce Department’s Bureau of Industry and Security (BIS) alleging violations of the U.S. Export Administration Regulations (EAR).

Specifically, the PCL alleges Seagate violated EAR by providing HDDs to a customer and its affiliates listed on the BIS Entity List between August 2020 and September 2021.

In response, Seagate has told the BIS it did not engage in prohibited conduct as alleged by BIS, because, among other reasons, Seagate’s HDDs are not subject to the EAR.

The penalty, should Seagate be punished, may materially impact cash flows.

The disclosure came after the market closed on a Friday.
Related: MU, SMSN, WDC, HYNSE, TOSY.Y
Become a DuDil Insider

Get our due diligence alerts before they're published & be first to know.