ON Semiconductor Corporation (NASDAQ: ON)

Join This Class Action

NEW YORK, NY –  January 4, 2024 – Wolf Haldenstein Adler Freeman & Herz LLP  (“Wolf   Haldenstein”) reminds investors that a federal securities class action has been filed against  ON Semiconductor Corporation (“the Company”) (NASDAQ: ON) on behalf of stockholders who purchased common stock between May 1, 2023 and October 27, 2023, both dates inclusive (the “Class Period”). 

All investors who purchased shares and incurred losses are  advised  to contact the firm immediately at classmember@whafh.com or (800) 575-0735 or (212) 545-4774. 

If you have incurred losses, you may, no later than February 12, 2024, request that the Court appoint you lead plaintiff of the proposed class. Please contact Wolf Haldenstein to learn more about your rights.

On Semiconductor manufactures and sells semiconductor components for various electronic devices worldwide and serves OEMs, distributors and electronic manufacturing service providers.  The Company operates in three segments: Power Solutions Group (“PSG”). Advanced Solutions Group (“ASG”), and Intelligent Sensing Group (“ISG”).  The PSG segment offers semiconductor products for several applications, such as power switching, power conversion, signal conditioning, circuit protection, signal amplification, and voltage regulation functions.  The ASG segment designs and develops analog, mixed-signal, advanced logic, Wi-Fi, and other products for the electric power industry.  The ISG segment offers metal oxide semiconductor image sensors, proximity sensors, image signal processors, radars and actuator drivers for autofocus and image stabilization for a range of customers in automotive, industrial, medical, aerospace/defense, communications, networking, wireless, consumer and computing markets.

On October 28, 2021, prior to the Class Period, ON Semiconductor acquired GT Advanced Technologies Inc., (“GTAT”) – a SiC producer.  GTAT has considerable experience in crystalline growth, including SiC, which is a key material for semiconductors that provide technical benefits in SiC power switching devices, significantly improve system efficiency in EVs, EV charging, and energy infrastructure.

The Class Period begins on May 1, 2023, when, in connection with the release of the Company’s 1Q 2023 earnings, management spoke extensively about the growth of the Company’s SiC business.  Specifically, management stated that the Company has “more and more confidence” in reaching $1 billion in annual revenue for its SiC products in 2023.  Management represented that the Company’s outlook was “actually very, very predictable,” a “benefit that we’ve been talking about with the LTSAs that have us really, with our customers, align on pricing and volume through the duration of the LTSAs.”

Later, on July 31, 2023, in connection with second quarter earnings, management praised the Company for “sign[ing] more than $3 billion of new [SiC] LTSAs” and raising the Company’s committed SiC revenue to “over $11 billion.”  Management also stated reassuringly that automotive and industrial markets, which make up about 90% of the LTSA mix, remained “healthy” and that the “strength in these markets is sustained.”

At a conference on September 7, 2023, management explained that the Company had been able to avoid the downturn within the industry because “the LTSA coverage that we have is actually protecting us and we’re building the LTSAs.”

On October 30, 2023, the Company reported its 3Q 2023 financial results.  During the earnings conference call, management revealed that ON Semiconductor would miss its $1B SiC 2023 revenue target by approximately $200 million due to “a single automotive OEM’s recent reduction in demand” and that the Company expected “a mid-single digit decline in automotive given the softness in Europe … with greater sequential declines in industrial and other end markets.”  Management also explained that the LTSAs were not “locked in” and that the Company was “allowing some pushouts as long as there’s a win-win for both companies in that situation.”

On this news, the Company’s stock fell $18.18 per share,or nearly 22%, to close at $65.34 per share on October 30, 2023.

Wolf Haldenstein has extensive experience in the prosecution of securities class actions and derivative litigation in state and federal trial and appellate courts across the country.  The firm has attorneys in various practice areas; and offices in New York, Chicago and San Diego.  The reputation and expertise of this firm in shareholder and other class litigation has been repeatedly recognized by the courts, which have appointed it to major positions in complex securities multi-district and consolidated litigation.

If you wish to discuss this action or have any questions regarding your rights and interests in this case, please immediately contact Wolf Haldenstein by telephone at (800) 575-0735 or via e-mail at classmember@whafh.com.

Contact:

Wolf Haldenstein Adler Freeman & Herz LLP

Gregory Stone, Director of Case and Financial Analysis

Email: gstone@whafh.com or classmember@whafh.com

Tel: (800) 575-0735 or (212) 545-4774

 


Certification and Authorization Pursuant to Federal Securities Laws

  • The individual or entity listed below requests Wolf Haldenstein Adler Freeman & Herz LLP to file an action or motion for appointment as lead plaintiff and lead counsel under the federal securities laws to recover damages and to seek other relief against ON Semiconductor Corporation (NASDAQ: ON). Wolf Haldenstein Adler Freeman & Herz LLP will not do so until you complete a retainer agreement authorizing us to prosecute the action on a contingent fee basis.

  • I, individually or on behalf of the entity I represent ("I"), hereby certify as follows:

    1. I have reviewed the complaint and authorize the filing of a lead plaintiff motion or action on my behalf.
    2. I did not acquire the security that is the subject of this action at the direction of the Firm or in order to participate in this private action or any other litigation under the federal securities laws.
    3. I am willing to serve as a representative party on behalf of a class, including providing testimony at deposition and trial, if necessary.
    4. I represent and warrant that I am fully authorized to enter into and execute this certification.
    5. I will not accept any payment for serving as a representative party on behalf of the class beyond my pro rata share of any recovery, except such reasonable costs and expenses (including lost wages) directly relating to the representation of the class as ordered or approved by the court.
    6. I have made no transaction(s) during the Class Period in the debt or equity securities that are the subject of this action except those set forth below:
  • Type of SecurityBuy Date (mm/dd/yy)# of SharesPrice per Share 
  • Type of SecuritySell Date (mm/dd/yy)# of SharesPrice per Share 
  • Signed pursuant to California Civil Code Section 1633.1, et seq. - and the Uniform Electronic Transactions Act as adopted by the various states and territories of the United States.

Date of signing: 02/22/2024