Plaintiffs bring this action as a class action, pursuant to Fed. R. Civ. P. 23, on behalf of a class of purchasers of the common stock of Western Digital to recover damages arising from defendants' violations of the federal securities laws. This class action is brought on behalf of a class of all purchasers of Western Digital common stock (the "Class") between July 25, 1996 and January 29, 1998 (the "Class Period"). This action involves a course of conduct by Western Digital insiders, officers and directors of the Company that was designed to, and did, defraud those who purchased Western Digital securities during the Class Period.
As a result of the defendants' material misrepresentations and omissions, the price of Western Digital common stock traded as high as $54 per share during the Class Period. Western Digital insiders took advantage of the artificially inflated price of Western Digital common stock and sold, collectively, over 450,000 shares for insider trading gross proceeds exceeding $15 million. On the last day of the Class Period, when the truth was revealed about Western Digital's business, the price of Western Digital common stock plummeted to $17.25 per share on unusually high volume of 3.7 million shares.

Update

On August 24, 1998, the Court entered the Order by U.S. District Judge Stephen V. Wilson dismissing the plaintiffs' consolidated Amended Complaint with prejudice and terminating case.