Toshiba Seeks Dismissal of Western Digital Injunction Request Over Chip Unit

Toshiba has asked a US court to dismiss a Western Digital request for an injunction to prevent a sale of the Japanese firm’s chip business, saying the court has no jurisdiction and that an injunction would cause irreparable harm.

Western Digital, which jointly runs Toshiba’s main semiconductor plant, has claimed that its partner has breached joint venture contracts as it pursues an $18 billion sale of the unit and is seeking an injunction to prevent any deal without its consent.

In its filing with the Superior Court of California, Toshiba argued that their joint venture interests only cover a small portion of its flash memory semiconductor business and that the court has no jurisdiction as its primary place of business was Japan.

Western Digital argues that an injunction will ensure that an international arbitration court will be given an appropriate opportunity to resolve their dispute.

The court hearing on the issue is scheduled for July 14 and Western Digital has said it believes a decision could come on the same day.

Western Digital is expected to file a response to Toshiba’s opposition before the hearing.

 

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