Faruqi & Faruqi, LLP, a prominent national securities law firm, is currently investigating potential claims against ON Semiconductor Corporation (NASDAQ: ON). Investors are reminded of the upcoming February 12, 2024 deadline to seek the role of lead plaintiff in a federal securities class action that has been filed against the company.
According to the complaint, ON Semiconductor and its executives are alleged to have violated federal securities laws by making false statements and failing to disclose key information. Specifically, it is claimed that the company falsely represented that revenues from reported LTSAs (Long-Term Supply Agreements) were guaranteed and could not be revoked by customers, when in reality, the company had the ability to modify or eliminate these agreements. The complaint also argues that the defendants misled investors by suggesting that the LTSAs would provide stable and predictable performance for the company’s growth, even in the face of challenging market conditions, when in fact these agreements were subject to change. Additionally, it is alleged that ON Semiconductor falsely claimed to have good visibility into customer demand, while in reality, demand could decrease unexpectedly.
Investors discovered the truth about the company’s LTSA strategy and projected revenue performance during ON Semiconductor’s third quarter 2023 financial results announcement on October 30, 2023. CEO Keith Jackson disclosed that the company would miss its $1 billion SiC 2023 revenue target by approximately $200 million due to a significant reduction in demand from a single automotive OEM. As a result of this news, ON Semiconductor’s stock price tumbled by nearly 22% on October 30, 2023.
It is important for potential class members to take action before the February 12, 2024 deadline to secure their rights in this class action lawsuit. Any member of the class may choose to move the court to serve as lead plaintiff or may opt to remain an absent class member. The decision to participate as a lead plaintiff or not does not impact an individual’s ability to share in any potential recovery. Faruqi & Faruqi, LLP also encourages anyone with relevant information regarding ON Semiconductor’s conduct to come forward and contact the firm.
The source of the article is from the blog revistatenerife.com