Disputes between the Western Digital with Seagate in $ 525M

Western Digital this morning said the company was hit with a $525 million damages award in an arbitration award in an action in Minnesota that had been filed by rival Seagate. The case alleges “misappropriation of confidential information and trade secrets.”

“We believe the company acted properly at all times and we will vigorously challenge the award. Hard drive maker Western Digital announced this morning that on November 18, 2011, an arbitration award of $525 million was rendered against the company by a sole arbitrator in a pending confidential arbitration action in Minnesota brought on by Seagate. "We do not believe there is any basis in law or fact for the damage award of the arbitrator," said John Coyne, president and chief executive officer of Western Digital. Western Digital said this case won't disrupt those efforts, nor will it interfere with the company's planned acquisition of Hitachi GST.

Storage manufacturer Seagate has been awarded $525 milion as a settlement in its dispute with Western Digital. The pair have been in arbitration over allegations of misappropriated confidential information and use of trade secrets following a former Seagate employee moving to Western Digital, in an industry where Seagate holds 40 percent of the market as compared to Western Digital's 33 percent. There's little information on the details of Seagate's complaint, and the company has yet to issue a statement in reaction to the arbitrator's award.