Simulations Plus (SLP) Faces Investor Scrutiny After Asset Impairment and Auditor Firing-- Hagens Berman

Core Viewpoint - Hagens Berman has initiated an investigation into Simulations Plus, Inc. following a significant stock price drop of approximately 25% due to alarming disclosures, including a large asset impairment charge and the termination of its independent auditor, Grant Thornton [1][3]. Financial Performance - Simulations Plus reported a net loss of $67.3 million for Q3 2025, primarily driven by a $77.2 million impairment charge related to prior acquisitions, aimed at aligning asset book values with current market values [3]. Auditor Termination - The company terminated its engagement with Grant Thornton, which had been hired just two months prior, citing the auditor's inability to finalize matters related to segment reporting and internal controls in time for the quarterly report [3]. - Grant Thornton contradicted Simulations Plus's explanation in a letter to the SEC, stating that it had raised specific concerns regarding segment reporting and internal controls that were not resolved satisfactorily at the time of termination [4]. Investigation Focus - Hagens Berman's investigation is centered on whether Simulations Plus misled investors regarding the reasons for the auditor's dismissal and whether its financial statements accurately reflected asset values [5]. - The firm is examining the discrepancies between Simulations Plus's public statements and the auditor's communications to the SEC, highlighting the potential implications for investor trust [5].