INVESTOR ALERT: Law Offices of Howard G. Smith Announces the Filing of a Securities Class Action on Behalf of ON Semiconductor Corporation (ON) Investors

BENSALEM, Pa.--(BUSINESS WIRE)--Law Offices of Howard G. Smith announces that a class action lawsuit has been filed on behalf of investors who purchased ON Semiconductor Corporation (“onsemi” or the “Company”) (NASDAQ: ON) common stock between May 1, 2023, and October 27, 2023, inclusive (the “Class Period”). onsemi investors have until February 12, 2024 to file a lead plaintiff motion.

Investors suffering losses on their onsemi investments are encouraged to contact the Law Offices of Howard G. Smith to discuss their legal rights in this class action at 888-638-4847 or by email to [e-mail].

On October 30, 2023, onsemi 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, onsemi’s stock price fell $18.18, or 21.8%, to close at $65.34 per share on October 30, 2023, thereby injuring investors.

The complaint filed in this class action alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors that: (1) revenues from billions of dollars in reported long-term supply agreements (“LTSAs”) were “committed” and “locked in,” and were effectively certain to be obtained by the Company when, in fact, the Company could and would abrogate the LTSAs at a customer’s request; (2) LTSAs provided “predictable” and “sustainable” performance to drive the Company’s growth, even in tough macroeconomic conditions, when, in fact, they would be modified or eliminated as conditions changed; and (3) Defendants had “good visibility” into customer demand when, in fact, demand could be reduced on short notice, even where LTSAs were in effect; and (4) as a result, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis at all relevant times.

If you purchased onsemi common stock, have information or would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Howard G. Smith, Esquire, of Law Offices of Howard G. Smith, 3070 Bristol Pike, Suite 112, Bensalem, Pennsylvania 19020, by telephone at [phone], toll-free at [phone], or by email to [e-mail], or visit our website at www.howardsmithlaw.com.

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