Synopsys(US:SNPS) Businesswire·2025-10-31 21:38Core Viewpoint - A class action lawsuit has been filed against Synopsys, Inc. for securities fraud, alleging that the company made misleading statements regarding its business performance and failed to disclose adverse facts during the class period from December 4, 2024, to September 9, 2025 [1][5]. Financial Performance - Synopsys reported third quarter 2025 revenue of $1.740 billion, which was below the guidance range of $1.755 billion to $1.785 billion [3]. - The net income for the quarter was $242.5 million, representing a 43% decline from $425.9 million in the same quarter of 2024 [3]. - The Design IP segment accounted for approximately 25% of total revenue, generating $426.6 million, a 7.7% year-over-year decline [3]. - Management's guidance indicated a potential decline of at least 5% in Design IP revenues for the full fiscal year 2025 [3]. Stock Market Reaction - Following the release of disappointing financial results, Synopsys's stock price fell by $216.59, or 35.8%, closing at $387.78 per share on September 10, 2025, with unusually high trading volume [4]. Allegations in the Lawsuit - The lawsuit claims that Synopsys's management failed to disclose the negative impact of its focus on artificial intelligence customers on the Design IP business [5]. - It is alleged that management's statements regarding the company's business prospects were materially misleading and lacked a reasonable basis [5].