Synopsys (SNPS) Exists Amidst Securities Class Action, IP Unit Scrutiny -- Hagens Berman

Core Insights - Synopsys, Inc. is undergoing a significant leadership change with the departure of its Chief Revenue Officer, Rick Mahoney, amid escalating legal pressures and a recent stock decline [1][2][4] Company Developments - Rick Mahoney's departure as CRO was announced on November 4, 2025, effective immediately, with the company in advanced stages of searching for a replacement [2] - The leadership change follows a substantial stock drop of over 35% in a single trading day, triggered by disappointing performance in the Design IP segment [4] Legal Challenges - A securities class action lawsuit has been initiated against Synopsys, alleging that the company misled investors regarding customer risks and growth prospects during the class period from December 4, 2024, to September 9, 2025 [3][5] - The lawsuit claims that Synopsys failed to disclose material adverse facts about the profitability of its Design IP business, particularly in relation to its shift towards AI-focused clients [5][6] Financial Performance - The Design IP segment reported a revenue decline of 7.7% year-over-year, attributed to a strategic shift towards more complex and customized AI components, which require more resources and time [3][4] - This unexpected weakness in the Design IP segment has raised concerns about the company's overall profitability and business model sustainability [6][7]