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.. 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.