Synopsys(US:SNPS) Newsfile·2025-11-24 11:08Core Viewpoint - A class action lawsuit has been filed against Synopsys, Inc. and certain senior executives for securities fraud following a significant stock drop due to potential violations of federal securities laws [1][3]. Company Overview - Synopsys, Inc. provides design automation software products used for designing and testing integrated circuits. Its Design IP segment, which supplies pre-designed silicon components to semiconductor companies, has been the fastest-growing segment, increasing from 25% of revenue in 2022 to 31% in 2024 [4]. Allegations and Financial Performance - The lawsuit claims that Synopsys misled investors by stating that customers relied on its IP to minimize integration risk and that the company was experiencing strength in Europe and South Korea. However, it is alleged that customers required more customization for IP components, negatively impacting the economics of the Design IP business [5]. - In Q3 2025, Synopsys reported a revenue of $425.9 million for its Design IP segment, reflecting a 7.7% year-over-year decline, and a net income of $242.5 million, a 43% year-over-year decline. The company indicated that increased customization demands were prolonging project timelines and requiring more resources [6]. Stock Market Reaction - Following the release of disappointing Q3 2025 financial results, Synopsys's stock price fell by $217.59 per share, or nearly 36%, from $604.37 on September 9, 2025, to $387.78 on September 10, 2025 [6].