SNPS CLASS ACTION LAWSUIT: BFA Law Alerts Synopsys, Inc. Investors that a Class Action Lawsuit was Filed Against the Company for Fraud and Urges You to Contact the Firm

Core Viewpoint - A class action lawsuit has been filed against Synopsys, Inc. for securities fraud following a significant stock drop due to potential violations of federal securities laws [1][2]. Company Overview - Synopsys, Inc. specializes in design automation software products used for designing and testing integrated circuits. Its Design IP segment, which provides pre-designed silicon components, has been the fastest-growing segment, increasing from 25% of revenue in 2022 to 31% in 2024 [3]. Allegations and Business Impact - The lawsuit claims that Synopsys misled investors by stating that customers relied on its IP to minimize integration risk and that the company was experiencing strength in Europe and South Korea. However, it is alleged that customers began requiring more customization for IP components, negatively impacting the economics of the Design IP business and threatening its business model [4]. Financial Performance and Stock Reaction - On September 9, 2025, Synopsys reported Q3 2025 financial results, indicating that its Design IP segment revenue was $425.9 million, a 7.7% decline year-over-year, and net income was $242.5 million, a 43% year-over-year decline. The company acknowledged that increased customization demands from customers were prolonging processes and requiring more resources. Following this announcement, Synopsys stock plummeted nearly 36%, from $604.37 to $387.78 per share [5].