NEW YORK — Three executives and four financial underwriters have been named in a class action lawsuit filed on behalf of certain shareholders of ON Semiconductor Corp.
According to a statement issued by law firm Bernstein, Liebhard & Lifshitz, LLP, which has been retained as one of the law firms representing the class, the suit was filed on behalf of anyone who acquired securities of ON Semiconductor Corporation between April 27, 2000 and December 6, 2000.
Rhode Island's Market Has Changed. Developers, Builders, Investors and Sellers Must Change With It.
By Emilio DiSpirito IV License Partner | Engel & Völkers Oceanside Leader | The DiSpirito…
Learn More
The case is pending in the U.S. District Court for the Southern District of New York.
According to the firm, the complaint alleges that defendants violated the Securities Act of 1993 and the Securities Exchange Act of 1934 for issuing a Registration Statement and Prospectus that contained misleading information. The Prospectus was issued in connection with ON Semiconductor’s initial public offering of 30 million shares of common stock at $16 per share that was completed April 27, 2000.
Named as defendants in the suit are ON Semiconductor and its executive officers Steve Hanson, Dario Sacomani and Curtis J. Crawford. Also named in the suit are underwriters of the initial public offering Morgan Stanley & Co., Inc.; Lehman Brothers, Inc.; FleetBoston Robertson Stephens, Inc.; and Salomon Smith Barney, Inc.
It is alleged that the underwriters had solicited and received excessive and undisclosed commissions from certain investors in exchange for which the underwriters allocated shares to those investors. It is also alleged that the underwriters entered into agreements with customers in which those underwriters agreed to allocate ON Semiconductor shares for which the customers agreed to purchase additional ON Semiconductor shares in the aftermarket at pre-determined prices.
Other law firms representing the class include Schiffrin & Barroway, LLP; Milberg Weiss; and Cauley Geller Bowman & Coates, LLP.
