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Toshiba Sues Western Digital for $1.1 Billion

Category: Storage / Hard Drives
Posted: 10:42PM
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Well-known electronics company Toshiba is suing Western Digital to the tune of $1.1 billion for damages in a Japanese court. The reason given for the lawsuit is to prevent Western Digital from stopping the sale of Toshiba's flash memory division. Western Digital recently prevented the sale of this division by invoking an arbitration clause in the duo's business agreement. Toshiba, reportedly, plans to use funds generated by the sale of this division to fix budget issues stemming from a loss in its nuclear power business.

According to an analyst at Macquarie Group Ltd., "Toshiba has made very clear that they want to move the process along without Western Digital’s obstruction, which, frankly, hasn’t been particularly constructive." Toshiba argues that Western Digital never formalized its business relationship after the SanDisk acquisition last year and that, "Western Digital’s claims are false, designed only to interfere with the sale process, and have damaged Toshiba and TMC." For more information check out the source below!

Source: Bloomberg



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