Workflow
SNPS INVESTOR ALERT: Synopsys, Inc. Investors with Substantial Losses Have Opportunity to Lead the Synopsys Class Action Lawsuit
SynopsysSynopsys(US:SNPS) Prnewswireยท2025-11-01 01:10

Core Viewpoint - The Synopsys class action lawsuit alleges that the company and its executives violated the Securities Exchange Act of 1934, leading to significant financial losses for investors [1][3]. Group 1: Allegations and Financial Impact - The lawsuit claims that Synopsys failed to disclose the negative impact of its increased focus on artificial intelligence customers on the economics of its Design IP business [3]. - Synopsys reported third quarter 2025 revenue of $1.740 billion, which was below its guidance of $1.755 billion to $1.785 billion, and net income of $242.5 million, representing a 43% decline year-over-year from $425.9 million in Q3 2024 [4]. - The Design IP segment accounted for approximately 25% of revenue, totaling $426.6 million, which is a 7.7% decline year-over-year, with guidance indicating a full-year decline of at least 5% for fiscal 2025 [4]. Group 2: Legal Process and Representation - The Private Securities Litigation Reform Act of 1995 allows any investor who purchased Synopsys securities during the class period to seek appointment as lead plaintiff in the lawsuit [5]. - The lead plaintiff is typically the investor with the greatest financial interest in the case and acts on behalf of all class members [5]. Group 3: Company Background - Synopsys provides electronic design automation software products used for designing and testing integrated circuits, operating in two segments: Design Automation and Design IP [2].