Synopsys, Inc. (SNPS) Investors with Substantial Losses Have Opportunity to Lead Investor Class Action Lawsuit - RGRD Law

Core Viewpoint - The Synopsys class action lawsuit alleges that the company and certain executives violated the Securities Exchange Act of 1934, with claims centered around undisclosed issues affecting the company's financial performance and business segments [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 failed to disclose the negative impact of its increased focus on artificial intelligence customers on the economics of its Design IP business, leading to poor financial results [3]. - On September 9, 2025, Synopsys reported third quarter 2025 revenue of $1.740 billion, missing guidance of $1.755 billion to $1.785 billion, and net income of $242.5 million, a 43% decline year-over-year from $425.9 million [4]. - The Design IP segment accounted for approximately 25% of revenue, totaling $426.6 million, reflecting a 7.7% year-over-year decline, with guidance indicating at least a 5% decline in full-year revenues for fiscal 2025 [4]. - Following the financial report, Synopsys' stock price fell by nearly 36% [4].