INVESTOR ALERT: The Synopsys, Inc. Securities Fraud Class Action is Pending, Investors Urged to Contact BFA Law by December 30 Deadline
SynopsysSynopsys(US:SNPS) Newsfile·2025-12-04 20:46

Core 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]. 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 [3]. - Investors have until December 30, 2025, to request to lead the case [3]. - The complaint alleges violations under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 on behalf of Synopsys investors [3]. Group 2: Company Performance - 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, and reported strength in Europe and South Korea [5]. 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 [6]. - The company indicated that customers required more customization for IP components, which negatively impacted the economics of its Design IP business [6]. - Following the financial results, Synopsys stock fell nearly 36%, from $604.37 per share to $387.78 per share [6].