Synopsys(US:SNPS) Newsfile·2025-11-26 12:17Core Viewpoint - A class action lawsuit has been filed against Synopsys, Inc. for securities fraud following a significant stock drop due to potential violations of federal securities laws [2][4]. Group 1: Lawsuit Details - The lawsuit is pending in the U.S. District Court for the Northern District of California, titled Kim v. Synopsys, Inc., et al., No. 3:25-cv-09410 [4]. - Investors have until December 30, 2025, to request to be appointed to lead the case [4]. Group 2: Company Performance and Allegations - Synopsys provides design automation software and has seen its Design IP segment grow from 25% of revenue in 2022 to 31% in 2024 [5]. - The company previously claimed that customers relied on its IP to minimize integration risk and noted strength in Europe and South Korea [6]. - Allegations state that customers began requiring more customization for IP components, negatively impacting the economics of the Design IP business [6]. Group 3: Financial Impact - On September 9, 2025, Synopsys reported Q3 2025 results, revealing a 7.7% year-over-year decline in Design IP revenue to $425.9 million and a 43% year-over-year decline in net income to $242.5 million [7]. - Following the release of these results, Synopsys stock fell nearly 36%, from $604.37 per share to $387.78 per share [7].