I'm one of the businessmen Proposition 201 opponents call a ``stock swindler.'' They say we're criminals because we've been sued.
In 1979, I helped start Seagate Technology, Inc. Today, Seagate employs over 67,000 people and is the world's largest independent maker of computer disk drives. Seagate didn't become successful swindling people. We became successful by working hard and making a great product.
Seagate has been victimized by shareholder lawsuits three times.
The first time, lawyers accused us of being too optimistic and demanded $100 million. At the time, we felt it would cost less to settle than fight. We paid $1 million, our insurer paid $8 million, and the lawyers got nearly $3 million. So they sued us twice again.
Furious, we decided to fight. A judge threw one of the suits out, but it still cost $4 million in legal expenses. The other suit, we're still fighting. Meanwhile, our shareholders have seen their stock value rise dramatically since all this started. Does that make me a stock swindler?
Many honest businesses and their employees are being victimized by the same scam.
Howard Owens wants to scare you by falsely claiming Proposition 201 would hurt seniors. Proposition 201 doesn't target pension funds or retirement. It targets unscrupulous lawyers.
Valid lawsuits against real swindlers WOULD still be brought and won if Proposition 201 passes. But lawyers would think twice before bringing BOGUS suits.
ALAN SHUGART
Chairman, Seagate Technology, Inc.