Synopsys(US:SNPS) Businesswire·2025-11-06 17:00Core Viewpoint - Synopsys, Inc. is facing a class action lawsuit due to significant financial underperformance and misleading statements made during the class period from December 4, 2024, to September 9, 2025, which has led to substantial losses for investors [1][5]. Financial Performance - On September 9, 2025, Synopsys reported third quarter 2025 revenue of $1.740 billion, which was below the guidance range of $1.755 billion to $1.785 billion [3]. - The net income for the quarter was $242.5 million, representing 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, which is a 7.7% year-over-year decline [3]. - Management's guidance indicated a full-year decline of at least 5% in Design IP revenues for fiscal 2025 [3]. Stock Market Reaction - Following the financial results announcement, 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 [4]. Lawsuit Details - The class action lawsuit alleges that Synopsys made materially false and misleading statements regarding its business and financial prospects, particularly concerning its focus on artificial intelligence customers and the negative impact on its Design IP business [5]. - The lawsuit claims that the company failed to disclose critical information that would have affected investor decisions, including the adverse effects of its strategic focus on AI [5]. - Investors who purchased Synopsys securities during the class period have until December 30, 2025, to file a lead plaintiff motion [6].