Core Viewpoint - The Synopsys class action lawsuit alleges that the company and its executives violated the Securities Exchange Act of 1934, with claims centered around undisclosed issues affecting its financial performance and business operations [1][4]. 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 [3]. 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 [4]. - On September 9, 2025, Synopsys reported third quarter 2025 revenue of $1.740 billion, which was below its guidance of $1.755 billion to $1.785 billion, and net income of $242.5 million, marking a 43% decline from $425.9 million in the same quarter of 2024 [5]. - The Design IP segment accounted for approximately 25% of revenue, totaling $426.6 million, which represented a 7.7% year-over-year decline, with guidance indicating a potential full-year decline of at least 5% for fiscal 2025 [5].
SNPS INVESTOR ALERT: Robbins Geller Rudman & Dowd LLP Announces that Synopsys, Inc. Investors with Substantial Losses Have Opportunity to Lead Investor Class Action Lawsuit