Leading law firm Faruqi & Faruqi, LLP, has initiated an investigation into potential claims against ON Semiconductor Corporation for alleged violations of federal securities laws. Investors are urged to step forward and apply for the role of lead plaintiff in a class action lawsuit by the February 12, 2024 deadline.
Accusations against ON Semiconductor center around false and misleading statements made by the company and its executives regarding Long-Term Supply Agreements (LTSAs). Previously, ON Semiconductor claimed that these agreements provided secure and committed revenues, predictable performance, and clear visibility into customer demand. However, it is now alleged that the company had the ability to alter LTSAs upon customer requests and that demand could be reduced with little notice.
The truth emerged on October 30, 2023, when ON Semiconductor announced that it would fall short of its $1 billion revenue target for Silicon Carbide (SiC) products by approximately $200 million. This shortfall was attributed to reduced demand from an automotive OEM. The announcement had a significant impact on investor confidence, causing ON Semiconductor’s stock price to drop almost 22% and resulting in substantial investor losses.
Faruqi & Faruqi, LLP is urging individuals with information regarding ON Semiconductor’s alleged misconduct to come forward and contact the firm. Any relevant details could play a crucial role in building a strong case against ON Semiconductor and holding the company accountable for its potential actions.
The source of the article is from the blog macnifico.pt