Synopsys(US:SNPS) Newsfile·2025-12-02 20:33Core Viewpoint - Synopsys, Inc. is facing a class action lawsuit for securities fraud following a significant stock drop attributed to alleged violations of federal securities laws [1][3]. Group 1: Lawsuit Details - A class action lawsuit has been filed against Synopsys and certain senior executives, with claims under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 [3]. - Investors have until December 30, 2025, to request to be appointed to lead the case, which is pending in the U.S. District Court for the Northern District of California [3]. Group 2: Company Performance and Allegations - Synopsys provides design automation software products, with its Design IP segment being the fastest-growing, increasing from 25% of revenue in 2022 to 31% in 2024 [4]. - The company previously claimed that customers relied on its IP to minimize integration risk and speed time to market, while also stating strength in Europe and South Korea [5]. - Allegations suggest that customers began requiring more customization for IP components, negatively impacting the economics of the Design IP business and jeopardizing the business model [5]. Group 3: Financial Impact - On September 9, 2025, Synopsys reported Q3 2025 results, revealing a 7.7% year-over-year decline in revenue for the Design IP segment, totaling $425.9 million, and a 43% year-over-year decline in net income, amounting to $242.5 million [6]. - Following the release of these results, Synopsys stock fell nearly 36%, from $604.37 per share to $387.78 per share within a day [6].