Seagate Dumps eSys As Distributor

Seagate has dropped its largest distributor amid allegations of unfair business practices, but what effect that will have on the hard drive makers financial picture is unclear. According to a filing by Seagate with the Securities and Exchange Commission, eSys Technologies did not allow third-party auditors to examine records of its participation in Seagate’s incentive program, “notwithstanding our contractual rights to do so. eSys officials also indicated to us that an audit would likely reveal irregularities in eSys’ compliance with the terms of our incentive programs and other unspecified irregularities. In addition, eSys has failed to make full current payments on its obligations to us.”


Seagate has dropped its largest distributor amid allegations of unfair business practices, but what effect that will have on the hard drive makers financial picture is unclear. According to a filing by Seagate with the Securities and Exchange Commission, eSys Technologies did not allow third-party auditors to examine records of its participation in Seagate’s incentive program, “notwithstanding our contractual rights to do so. eSys officials also indicated to us that an audit would likely reveal irregularities in eSys’ compliance with the terms of our incentive programs and other unspecified irregularities. In addition, eSys has failed to make full current payments on its obligations to us.”

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