Onsemi Defeats Investor Suit Over Demand Stability for Now (1)

ON Semiconductor Corp. and two top executives beat allegations they misled shareholders about the enforcement of long-term supply agreements meant to stabilize demand, a federal judge ruled.

The lead investor failed to allege any actionable misstatements or an inference of intent to defraud, said Judge Susan M. Brnovich while dismissing the suit in the US District Court for the District of Arizona.

CEO Hassane El-Khoury touting the agreements’ predictability and “ironclad” nature amounts to inactionable puffery and his speaking about the LTSAs putting Onsemi in a “much better spot” wasn’t objectively verifiable, Brnovich said in her July 11 order. And, ...