Stockholder Alert: Robbins LLP Informs Investors of the Synopsys, Inc. Class Action Lawsuit
SynopsysSynopsys(US:SNPS) Prnewswire·2025-11-03 23:15

Core Viewpoint - A class action lawsuit has been filed against Synopsys, Inc. for allegedly misleading investors about the performance of its IP business during the specified class period [1][2]. Summary by Sections Allegations - The complaint alleges that Synopsys did not disclose the negative impact of its increased focus on artificial intelligence customers on the economics of its Design IP business [2]. - It is claimed that certain decisions regarding the company's roadmap and resources were unlikely to achieve their intended results, which materially affected financial outcomes [2]. Financial Performance - On September 9, 2025, Synopsys reported third quarter 2025 financial results, indicating that its IP business underperformed expectations [3]. - The company reported quarterly revenue of $1.740 billion, which was below the guidance range of $1.755 billion to $1.785 billion [3]. - Net income for the quarter was $242.5 million, reflecting a 43% decline from $425.9 million in the same quarter of 2024 [3]. - The Design IP segment contributed approximately 25% of total revenue, amounting to $426.6 million, a 7.7% year-over-year decline [3]. - Management's guidance suggested a full-year decline of at least 5% in Design IP revenues for fiscal 2025 [3]. - Following the announcement, Synopsys's stock price dropped by $216.59, or 35.8%, closing at $387.78 per share on September 10, 2025 [3]. Legal Proceedings - Shareholders interested in participating as lead plaintiffs in the class action must submit their papers by December 30, 2025 [4]. - Participation in the case is not required to be eligible for recovery, allowing shareholders to remain absent class members if they choose [4].

Stockholder Alert: Robbins LLP Informs Investors of the Synopsys, Inc. Class Action Lawsuit - Reportify