SLP INVESTOR ALERT: Simulations Plus, Inc. is Being Investigated for Securities Fraud after Impairment Charge Leads to 26% Stock Drop – Investors Urged to Contact BFA

Core Insights - Simulations Plus, Inc. is under investigation for potential violations of federal securities laws following disappointing financial disclosures and issues with internal controls [1][3]. Company Overview - Simulations Plus is a software company focused on modeling and simulation tools for the pharmaceutical, biotechnology, and chemical industries [2]. Acquisition and Integration - In June 2024, Simulations Plus acquired Pro-ficiency Holdings, Inc., aiming to double its total addressable market and enhance sales [2][3]. - The integration of Pro-ficiency has reportedly faced challenges, contradicting the company's earlier claims of effective integration and internal controls [3]. Financial Performance and Stock Impact - On June 11, 2025, Simulations Plus announced disappointing preliminary financial results for Q3 2025, attributing the decline to market uncertainties, leading to a stock price drop of over 24% [4]. - The company reported a $77.2 million charge related to prior acquisitions in its Q3 2025 results, which further impacted stock performance, causing a nearly 26% decline in share price [5]. Auditor Dismissal and Findings - Following the disappointing results, Simulations Plus dismissed its auditor, Grant Thornton LLP, which raised concerns about segment reporting and internal controls [5]. - Grant Thornton indicated unresolved issues regarding the company's financial reporting and internal controls, which contributed to the stock's decline [5].