Synopsys(US:SNPS) Globenewswire·2025-12-13 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]. 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]. Financial Performance - In Q3 2025, Synopsys reported a revenue of $425.9 million for its Design IP segment, reflecting a 7.7% year-over-year decline. The net income was $242.5 million, marking a 43% year-over-year decline [6]. - The company indicated that its Design IP customers were requiring more customization, which was negatively impacting the economics of its Design IP business and jeopardizing its business model [5][6]. Stock Market Reaction - Following the release of disappointing Q3 2025 financial results on September 9, 2025, Synopsys's stock price fell from $604.37 per share to $387.78 per share, a decline of nearly 36% [6].