FEDERAL COURT ENDS SEAGATE SECURITIES LITIGATION; Summary Judgment Cites No Evidence of Fraud.
The class action litigation which had been pending since 1988, alleged violations of the federal securities laws by Seagate and several of its current and former officers and directors with respect to the period from April 13, 1988 to July 18, 1988. U.S. District Judge Vaughn R. Walker ruled that summary judgement was proper because, despite protracted litigation and extensive discovery, "... for a number of reasons...plaintiffs have failed to substantiate (their) claims with sufficient evidence..." "...and of fraud there is simply no proof..."
Seagate, which was scheduled to go to trial on March 15, 1995, has vigorously defended this action over the past six years. "This is a broad sweeping victory for Seagate, its directors and officers," said Alan Shugart, company president and CEO. "While the final outcome is gratifying, it is important to note that it has taken many years, a tremendous amount of mindshare, and millions of dollars to dispose of this unfounded lawsuit. This case exemplifies the need for legislative reform to rid America's high technology industry of the burden of meritless securities litigation with impedes this nation's competitive position and does a grave disservice to the company's shareholders."
Seagate Technology is a data technology company that provides products for storing, managing and accessing digital information on the world's computer and data communications systems. Seagate's stock is traded on the New York Stock Exchange under the symbol "SEG."
CONTACT: Seagate Technology, Scotts Valley
Julie A. Still, 408/438-6550, Media Relations
Nancy Hamm, 408/438-6550, Investor Relations
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|Date:||Feb 10, 1995|
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