Toshiba suing Western Digital for 1 billion
Toshiba is seeking a provisional disposition order for an injunction against acts of unfair competition, and also brought suit for a permanent injunction, damages and payment of 120 billion yen, alleging violation of the Unfair Competition Prevention Act, among other things.
The lawsuit states that WD has continually interfered with the bid process related to the sale of TMC.
Citing joint venture agreements between Toshiba and SanDisk, the lawsuit also says that WD has exaggerated its consent right – in both public statements and private communications to bidders and others involved in the sale process – in order to interfere with the sale of TMC which does not hold the ownership interests in joint venture companies co-owned with SanDisk.
The complaint goes on to state that proceeding with the sales process for TMC does not violate any consent rights held by WD; WD’s claims are false, designed only to interfere with the sale process, and have damaged Toshiba and TMC.
Toshiba and TMC have filed litigation in Japan because WD has improperly obtained Toshiba and TMC’s trade secrets by transferring employees of SanDisk to WD who have access to confidential information of Toshiba and TMC through their participation in the collaboration between SanDisk and Toshiba/TMC. ■