Synopsys(US:SNPS) Globenewswireยท2025-11-03 15:32Core Viewpoint - A class action lawsuit has been filed against Synopsys, Inc. for allegedly making materially false and misleading statements regarding its business operations and financial performance during the specified class period from December 4, 2024, to September 9, 2025 [2][6]. Allegation Details - The lawsuit claims that Synopsys failed to disclose significant adverse facts about its business, particularly regarding its focus on artificial intelligence customers, which negatively impacted the economics of its Design IP business [6]. - Specific allegations include that the company's decisions were unlikely to yield intended results, which materially affected financial outcomes, and that positive statements made by the company were misleading [6]. Financial Performance - On September 9, 2025, Synopsys reported third-quarter 2025 financial results, revealing quarterly revenue of $1.740 billion, which fell short of prior guidance of $1.755 billion to $1.785 billion [6]. - The net income reported was $242.5 million, representing a 43% decline year-over-year from $425.9 million in the third quarter of 2024 [6]. - The Design IP segment accounted for approximately 25% of total revenue, reporting $426.6 million, a 7.7% decline year-over-year [6]. - Management guidance indicated a potential decline of at least 5% in Design IP revenues for the full fiscal year 2025 [6]. Market Reaction - Following the release of disappointing financial results, Synopsys's stock price dropped by $216.59, or 35.8%, closing at $387.78 per share on September 10, 2025, with unusually high trading volume [6].