Core Viewpoint - A class action lawsuit has been filed against Synopsys, Inc. for securities fraud, following a significant drop in stock price attributed to alleged misrepresentations regarding its Design IP business [2][4]. Company Overview - Synopsys, Inc. specializes in design automation software products used for designing and testing integrated circuits. Its Design IP segment has been the fastest-growing area, increasing from 25% of revenue in 2022 to 31% in 2024 [5]. Financial Performance - In Q3 2025, Synopsys reported a revenue of $425.9 million for its Design IP segment, reflecting a 7.7% year-over-year decline. Net income was reported at $242.5 million, a 43% year-over-year decline [7]. Customer Dynamics - The company previously claimed that customers relied on its IP to minimize integration risk and expedite time to market. However, it was revealed that customers began requiring more customization for IP components, negatively impacting the economics of the Design IP business [6]. Stock Market Reaction - Following the release of disappointing Q3 2025 results, Synopsys's stock price fell from $604.37 to $387.78 per share, a decline of nearly 36% in one day [7].
SNPS STOCK NOTICE: Synopsys, Inc. Investors with Losses may have been Misled by the Company and are Urged to Contact BFA Law by December 30 Deadline