Important Update: Settlement payments to eligible Class Members were mailed in June 2022.
If you purchased a Western Digital WD Red NAS hard drive you may be entitled to a cash payment from a class action settlement.
What is this lawsuit and Settlement about?
A Settlement has been reached in a class action lawsuit pending in the United States District Court for the Northern District of California, Malone v. Western Digital Corporation, Case No. 5:20-cv-03584-NC.
Plaintiffs alleged that Western Digital misrepresented its “WD Red NAS” hard drives as suitable for use in NAS (Network Attached Storage) devices because the drives use “SMR” (Shingled Magnetic Recording) technology. Western Digital denies these allegations, denies that SMR is inferior technology, or that it did anything wrong. Plaintiffs and Western Digital have now agreed to a settlement to resolve this lawsuit. The Court has not decided whether Plaintiffs or Western Digital are correct.
How do I know if I am part of the Settlement Class?
The Settlement Class includes all persons in the United States (including its states, districts or territories) who purchased a WD Red NAS Drive using Shingled Magnetic Recording (“SMR”) technology between October 2018 and July 21, 2021. The specific hard drive models are: WD20EFAX (2TB capacity), WD30EFAX (3TB capacity), WD40EFAX (4TB capacity), and WD60EFAX (6TB capacity) hard drives.
What does the Settlement provide?
Per the terms of the Settlement, Settlement payments will be issued to consumers who are part of the Settlement Class and who filed a valid claim by November 27, 2021.
Payment amounts will be based on which hard drives a person purchased and the number of hard drives purchased. The purchasers of 2TB and 3TB WD Red NAS Drives will receive $4.00 for each drive purchased and purchasers of 4TB and 6TB WD Red NAS Drives will receive $7.00 for each drive purchased, which may be adjusted on a pro-rata basis depending on the number of claims filed. The maximum payout per claim, if there is a pro-rata upward adjustment, will be as high as 85% of the Manufacturers Suggested Retail Price value of the drive purchased.
Western Digital will also disclose on the product’s packaging that the WD Red NAS drives use Shingled Magnetic Recording or SMR technology for no less than 4 years after Final Approval of the Settlement.