Core Viewpoint - The Synopsys class action lawsuit alleges that the company and certain executives violated the Securities Exchange Act of 1934, failing to disclose significant issues affecting its financial performance, particularly in its Design IP business segment [1][3]. Company Overview - Synopsys, Inc. provides electronic design automation software products used for designing and testing integrated circuits, operating in two segments: Design Automation and Design IP [2]. Allegations and Financial Impact - The lawsuit claims that Synopsys' increased focus on artificial intelligence customers was negatively impacting the economics of its Design IP business, leading to poor financial results [3]. - On September 9, 2025, Synopsys reported third-quarter 2025 financial results, revealing quarterly revenue of $1.740 billion, which was below the guidance of $1.755 billion to $1.785 billion. Net income was reported at $242.5 million, a 43% decline from $425.9 million in the same quarter of 2024 [4]. - The Design IP segment accounted for approximately 25% of revenue, totaling $426.6 million, reflecting a 7.7% year-over-year decline. Guidance indicated a potential decline of at least 5% in Design IP revenues for the full fiscal year 2025 [4]. - Following the financial report, Synopsys' stock price fell by nearly 36% [4].
SNPS INVESTOR NOTICE: Robbins Geller Rudman & Dowd LLP Announces that Synopsys, Inc. Investors with Substantial Losses Have Opportunity to Lead Class Action Lawsuit