Seagate and eSys to settle all claims

New Delhi: eSys Technologies and Seagate have agreed to settle all claims against each other with neither admitting liability, thus ending a three-year-long dispute. Both the companies agreed to keep the terms and condition of the out-of-court agreement confidential.

“We are pleased with the amicable settlement of the dispute with Seagate. We will now move ahead and focus on growing the business and capitalizing on acquisition opportunities that the economic climate has created across the globe,” commented Akash Deep Sharma, Director, eSys Technologies.

Back in 2006, eSys was the largest distributor of Seagate accounting up to five percent of the vendor's revenue. This was roughly around $460 million or 80 million hard drive units and was also about 30 percent of eSys's total hard disk drive distribution. However, the partnership broke down in November 2006 when Seagate terminated its global contract with eSys alleging that eSys had refused to cooperate with an audit of Point of Sale records. Seagate claimed that the eSys officials had indicated that an audit would 'likely reveal' irregularities. eSys had denied all allegations of irregularities and had strongly opined that its refusal was due to the intrusive nature of the audit, which it could not justify to business partners worldwide under normal business practices.