Synopsys(US:SNPS) Businesswire·2025-11-03 19:54Core Viewpoint - Faruqi & Faruqi, LLP is investigating potential claims against Synopsys, Inc. due to allegations of violations of federal securities laws, particularly related to misleading statements about the company's financial performance and business operations [2][4]. Summary by Sections Legal Investigation - Faruqi & Faruqi, LLP is encouraging investors who suffered losses exceeding $100,000 in Synopsys between December 4, 2024, and September 9, 2025, to discuss their legal options [1]. - The firm has set a deadline of December 30, 2025, for investors to seek the role of lead plaintiff in a federal securities class action against Synopsys [2]. Allegations Against Synopsys - The complaint alleges that Synopsys and its executives made false and misleading statements regarding the impact of their focus on artificial intelligence customers on the Design IP business [4]. - Specific claims include that the increased focus on AI customers was deteriorating the economics of the Design IP business, leading to negative financial impacts and misleading positive statements about the company's prospects [4]. Financial Performance - On September 9, 2025, Synopsys reported third-quarter 2025 financial results, revealing quarterly revenue of $1.740 billion, which missed prior guidance of $1.755 billion to $1.785 billion [5]. - 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 [5]. - The Design IP segment accounted for approximately 25% of revenue, totaling $426.6 million, which is a 7.7% decline year-over-year [5]. - Management guidance indicated a full-year decline of at least 5% in Design IP revenues for fiscal 2025 [5]. Stock Market Reaction - Following the financial results announcement, Synopsys's stock price fell by $216.59, or 35.8%, closing at $387.78 per share on September 10, 2025, with unusually heavy trading volume [6].