Toshiba sues Western Digital for $1 billion
Western Digital has argued that under joint venture agreements Toshiba was not free to move memory business into a holding company nor put it up for sale without obtaining its agreement first.
Those joint venture agreements on manufacturing NAND flash memory were original signed with SanDisk Corp. but transferred to Western Digital when it acquired SanDisk in 2016
Toshiba’s lawsuit claims that Western Digital has exaggerated its rights under those agreements – in both public statements and private communications to bidders and others involved in the sale process – in order to interfere with the sale of Toshiba Memory Corp. The complaint goes on to state that proceeding with the sales process for TMC does not violate any consent rights held by WD.
The lawsuit also claims that Western Digital has improperly transferred employees of SanDisk to Western Digital and that to prevent further damage to Toshiba and Toshiba Memory Corp. it is blocking Western Digital’s access to joint venture information with effect from June 28.
Western Digital, which has a manufacturing relationship with Toshiba, felt that it should be given first refusal on the acquisition of the memory business. Toshiba is trying to sell off what is now called Toshiba Memory quickly to raise cash to cover a massive write down in its nuclear power business.
Related links and articles:
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Western Digital seeks injunction to stop Toshiba sale
Toshiba prefers Japanese group for memory business sale
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