Case Background:
This is a federal securities fraud class action lawsuit on behalf of those who purchased or otherwise acquired ON Semiconductor Corporation (“OnSemi”) (NASDAQ: ON) common stock between May 1, 2023 and October 27, 2023, inclusive (the “Class Period”).
The complaint 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 and operations. Specifically, Defendants misrepresented and/or failed to disclose that: (1) revenues from billions of dollars in reported long-term service agreements (“LTSAs”) were “committed” and “locked in,” and were effectively certain to be obtained by OnSemi when, in fact, OnSemi could and would abrogate the LTSAs at a customer’s request; (2) LTSAs provided “predictable” and “sustainable” performance to drive OnSemi’s growth, even in tough macroeconomic conditions, when, in fact, they would be modified or eliminated as conditions changed; (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 of the foregoing, Defendants’ positive statements about OnSemi’s business, operations, and prospects were materially false and misleading and/or lacked a reasonable basis at all relevant times.
Current Status of Case:
On September 25, 2025, Defendants filed a Motion to Dismiss the Amended Complaint. The Motion has been fully briefed and is pending decision before the Court. This action is ongoing.
If you wish to discuss this action or have any questions, please contact Kessler Topaz Meltzer & Check, LLP: Jon Naji, Esq. (484) 270-1453; toll-free at (844) 887-9500; or via e-mail at info@ktmc.com. If you would like additional information about the suit, please click on the link "Submit Your Information" above and fill out the form as promptly as possible.