TOKYO – The feud between Toshiba Corp. and its U.S. joint-venture partner Western Digital over a planned sale of Toshiba’s lucrative flash-memory unit is being aired at a Tokyo court.
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At the first hearing of the case Wednesday, Toshiba’s lawyers demanded 120 billion yen ($1.1 billion) in damages from Western Digital for allegedly interfering with its business.
Western Digital’s lawyers urged the court to throw Toshiba’s case out, saying it has filed a competing claim with an arbitration court in San Francisco.
The Tokyo District Court’s ruling could determine whether or not the sale, needed to keep financially strapped Toshiba afloat, can proceed.
Toshiba reached a deal in September with an international consortium headed by Bain Capital investment fund, but faces opposition from Western Digital, which bought their SanDisk joint venture.
