ON Semiconductor Corporation (ON) LTSA Strategy Case

The defendant has requested the court to dismiss the case.

D. Arizona

Court

2:24-cv-00594

Case number

05/01/2023

Class period Start

10/27/2023

Class period End

02/12/2024

Lead Plaintiff motion deadline

In October, CEO, Hassane El-Khoury revealed that ON would miss its $1 billion SiC 2023 revenue.
$ON fell 21.7%, losing over $7B of shareholder value.
The first affected investor already filed the initial claim over misleading about the demand for ON's SiC in Delaware court.

On October 30, 2023, ON Semiconductor (ON) during the investor earnings call, the Company’s President and CEO, Hassane El-Khoury revealed that ON would miss its $1 billion SiC 2023 revenue target by ~$200 million, roughly 20% of the Company’s expected SiC revenue for the year – due to “a single automotive OEM’s recent reduction in demand”. Thad Trent added, however, that the Company expects “greater sequential declines in industrial and other end markets” as well.

On this news, $ON fell 21.7% and lost over $7 billion of its market capitalization, seriously damaging stockholders.

Considering all early representations, Investors have reasons to suspect that Onsemi and certain Executives of misguiding them about the demand for the Company's SiC and other products, and the sustainability of its revenue growth, by overstating the impact of the Company’s LTSAs on the achievability of its revenue streams.

One of the affected stockholders has already filed the initial claim over misleading in Delaware court.

Case Status

Motion to dismiss

Alleged Offence

Misleading Statements,

Financial Misrepresentation,

Failure to Disclose,

Omissions

Suspected Party

Directors,

Management

Security Type

Stocks

Trade Direction

Long

Shock Event Date

10/28/2023

Filing date

12/13/2023

Lead Plaintiff Deadline

02/12/2024

Judge

Susan M Brnovich