Seagate settles BIS allegations over Huawei sales; to pay $300M over 5 years

Seagate Technology Holdings plc

Seagate agrees to pay $300M to U.S. Dept. of Commerce in $15M quarterly installments starting Oct 2023.
Settlement resolves BIS allegations that HDD sales to Huawei from Aug 2020-Sep 2021 violated export rules.
Company recorded a $300M penalty accrual in fiscal Q3 2023 GAAP results, to be reported Apr 20.
Seagate must complete three compliance audits (one third-party, two internal) over the 5-year term.
Suspended denial order will be waived after full payment and audit compliance; BIS will not pursue further proceedings.

item 1.01 item 2.02 item 9.01

Key facts

Extracted from this filing and checked against the source text.

Earnings Releases SEC 8-K Item 2.02 confidence 0.7

Seagate Technology Holdings plc reported preliminary financial results for fiscal third quarter of 2023.

Period: fiscal third quarter of 2023
Result: preliminary results

Exact text from the filing

The Company has recorded a penalty accrual for the fiscal third quarter of 2023 in the amount of $300 million, which will be reflected in its GAAP financial statements to be filed with its Quarterly Report on Form 10-Q for the period ended March 31, 2023.

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Material Agreements SEC 8-K Item 1.01/1.02 confidence 0.9

Seagate Technology Holdings plc entered into Settlement Agreement with U.S. Department of Commerce’s Bureau of Industry and Security (BIS) valued at $300 million (effective 2023-04-18).

Action: entry
Agreement: settlement
Counterparty: U.S. Department of Commerce’s Bureau of Industry and Security (BIS)
Value: $300 million
Effective: 2023-04-18

Exact text from the filing

On April 18, 2023, Seagate Technology LLC and Seagate Singapore International Headquarters Pte. Ltd (collectively, “Seagate”), each a subsidiary of Seagate Technology Holdings public limited company (the “Company”), entered into a settlement agreement (the “Settlement Agreement”) with the U.S. Department of Commerce’s Bureau of Industry and Security (“BIS”) that resolves BIS’s allegations regarding Seagate’s sales of hard disk drives to Huawei between August 17, 2020 and September 29, 2021.

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Source: SEC EDGAR

accession 0001193125-23-106624

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