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ON.US
id: 911

ON Semiconductor Corporation (ON) LTSA Strategy 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
Collecting participants…

ON Semiconductor Corporation

ON Semiconductor Corporation provides intelligent sensing and power solutions in the United States and internationally. The company operates through three segments Power Solutions Group, Analog and...

    Ticker
    ON.US
    ISIN
    US6821891057
    CIK
    0001097864
    Sector
    Technology
    Industry
    Semiconductors
    Country
    USA
    Address
    5701 North Pima Road, Scottsdale, AZ, United States, 85250