San Diego, CA -- (SBWire) -- 01/19/2024 --An investor, who purchased shares of ON Semiconductor Corporation (NASDAQ: ON), filed a lawsuit over alleged violations of Federal Securities Laws by ON Semiconductor Corporation in connection with certain allegedly false and misleading statements.
Investors who purchased shares of ON Semiconductor Corporation (NASDAQ: ON) have certain options and for certain investors are short and strict deadlines running. Deadline: February 12, 2024. NASDAQ: ON investors should contact the Shareholders Foundation at mail@shareholdersfoundation.com or call +1(858) 779 - 1554.
Scottsdale, AZ based ON Semiconductor Corporation provides intelligent sensing and power solutions in the United States and internationally. ON Semiconductor Corporation manufactures and sells semiconductor components for various electronic devices worldwide, including power and sensing solutions, and technologies for the electrification of the automotive industry. Critical to ON Semiconductor Corporation's long-term growth and success is its strategy to focus on the development, manufacture, and sale of a variety of products incorporating silicon carbide ("SiC"). A substantial portion of ON Semiconductor Corporation's SiC products are necessary components of a number of systems used in the production of electric vehicles ("EVs").
The plainDefendants made repeated misrepresentations to investors regarding the "stability" and "visibility" of the demand for onsemi's SiC and other products, and the sustainability of onsemi's revenue growth, by overstating the impact of onsemi's long-term supply agreements ("LTSAs") on the achievability of its revenue streams.
On May 1, 2023, ON Semiconductor Corporation released its first quarter 2023 earnings and accompanying investor earnings call with equity analysts. During that call, ON Semiconductor Corporation spoke extensively on the growth of ON Semiconductor Corporation's SiC business and touted the fact that the company has "more and more confidence" in its claim that it would reach $1 billion in annual revenue for its SiC products in 2023. Specifically, ON Semiconductor Corporation explained that its outlook was "actually very, very predictable," which was "the benefit that we've been talking about with the LTSAs that have us really, with our customers, align on pricing and volume through the duration of the LTSAs."
Then on October 30, 2023, before the market opened, ON Semiconductor Corporation announced its third quarter 2023 financial results. During the investor earnings call held that day, ON Semiconductor Corporation disclosed to investors that ON Semiconductor Corporation was "taking a very cautious approach" with its SiC products due to signs of a weakening demand in the company's automotive business segment (which generates between 75% and 90% of onsemi's SiC revenues), while also revealing that onsemi would miss its $1 billion 2023 SiC revenue target by approximately $200 million. ON Semiconductor Corporation claimed that the approximately 20% reduction in onsemi's expected SiC revenue was solely attributable to one customer (identified by many analysts as Tesla, Inc.). ON Semiconductor Corporation added, however, that onsemi expects "greater sequential declines in industrial and other end markets" as well.
Shares of ON Semiconductor Corporation (NASDAQ: ON) declined from $111.35 per share on July 31, 2023, to as low as $61.47 per share on November 01, 2023.
The plaintiff claims that between May 1, 2023, and October 27, 2023, the Defendants misrepresented and/or failed to disclose that revenues from billions of dollars in reported LTSAs were "committed" and "locked in," and were effectively certain to be obtained by ON Semiconductor Corporation when, in fact, ON Semiconductor Corporation could and would abrogate the LTSAs at a customer's request, that LTSA's provided "predictable" and "sustainable" performance to drive ON Semiconductor Corporation's growth, even in tough macroeconomic conditions, when, in fact, they would be modified or eliminated as conditions changed, that Defendants had "good visibility" into customer demand when, in fact, demand could be reduced on short notice, even where LTSAs were in effect, and that as a result of the foregoing, Defendants' positive statements about ON Semiconductor Corporation's business, operations, and prospects were materially false and misleading and/or lacked a reasonable basis.
Those who purchased shares of ON Semiconductor Corporation (NASDAQ: ON) have certain options and should contact the Shareholders Foundation.
Contact:
Shareholders Foundation, Inc.
Michael Daniels
3111 Camino Del Rio North - Suite 423
92108 San Diego
Phone: +1-(858)-779-1554
Fax: +1-(858)-605-5739
mail@shareholdersfoundation.com
About The Shareholders Foundation, Inc.
The Shareholders Foundation, Inc. is a professional portfolio monitoring and settlement claim filing service, , which does research related to shareholder issues and informs investors of securities class actions, settlements, judgments, and other legal related news to the stock/financial market. Shareholders Foundation, Inc. is in contact with a large number of shareholders and offers help, support, and assistance for every shareholder. The Shareholders Foundation, Inc. is not a law firm. Referenced cases, investigation, and/or settlements are not filed/reached and/or related to Shareholders Foundation. The information is provided as a public service. It is not intended as legal advice and should not be relied upon.
ON Semiconductor Corporation (NASDAQ: ON) Shareholder Alert: Lawsuit Alleges Misleading Statements
A lawsuit was filed on behalf of investors in ON Semiconductor Corporation (NASDAQ: ON) shares over alleged securities laws violations.