Synopsys(US:SNPS) Globenewswire·2025-12-07 12:18Core 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, captioned 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]. 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 reported Q3 2025 results showing a revenue decline in the Design IP segment to $425.9 million, a 7.7% year-over-year decrease, and a net income of $242.5 million, down 43% year-over-year [6]. Group 3: Market Reaction - Following the Q3 2025 results, Synopsys stock fell from $604.37 per share to $387.78 per share, a decline of nearly 36% [6]. - The decline was attributed to revelations that Design IP customers required more customization, impacting the business model and economics of the Design IP segment [5][6].