ON Semiconductor Corporation
The law firm of Kirby McInerney LLP announces that a class action lawsuit has been filed in the U.S. District Court for the District of Delaware on behalf of those who acquired ON Semiconductor Corporation (“ON” or the “Company”) (NASDAQ: ON) securities during the period from May 1, 2023 through October 27, 2023 (the “Class Period”). Investors have until February 12, 2024 to apply to the Court to be appointed as lead plaintiff in the lawsuit.
On October 30, 2023, ON released its third quarter 2023 financial results, revealing that the Company was “taking a very cautious approach” with its silicon carbide (“SiC”) products due to signs of weakening demand and would miss its $1 billion 2023 SiC revenue target by approximately $200 million. On this news, the price of ON shares declined by $18.18 per share, or approximately 21.8%, from $83.52 per share to close at $65.34 on October 30, 2023.
The lawsuit alleges that, throughout the Class Period, Defendants made false and/or misleading statements, as well as failed to disclose that: (i) revenues from billions of dollars in reported long-term supply agreements (“LTSA”) were “committed” and “locked in,” and were effectively certain to be obtained by ON when, in fact, ON could and would abrogate the LTSAs at a customer’s request; (ii) LTSAs’ provided “predictable” and “sustainable” performance to drive ON’s growth, even in tough macroeconomic conditions, when, in fact, they would be modified or eliminated as conditions changed; and (iii) Defendants had “good visibility” into customer demand when, in fact, demand could be reduced on short notice, even where LTSAs were in effect.
On October 30, 2023, ON released its third quarter 2023 financial results, revealing that the Company was “taking a very cautious approach” with its silicon carbide (“SiC”) products due to signs of weakening demand and would miss its $1 billion 2023 SiC revenue target by approximately $200 million. On this news, the price of ON shares declined by $18.18 per share, or approximately 21.8%, from $83.52 per share to close at $65.34 on October 30, 2023.
The lawsuit alleges that, throughout the Class Period, Defendants made false and/or misleading statements, as well as failed to disclose that: (i) revenues from billions of dollars in reported long-term supply agreements (“LTSA”) were “committed” and “locked in,” and were effectively certain to be obtained by ON when, in fact, ON could and would abrogate the LTSAs at a customer’s request; (ii) LTSAs’ provided “predictable” and “sustainable” performance to drive ON’s growth, even in tough macroeconomic conditions, when, in fact, they would be modified or eliminated as conditions changed; and (iii) Defendants had “good visibility” into customer demand when, in fact, demand could be reduced on short notice, even where LTSAs were in effect.