Core Viewpoint - Faruqi & Faruqi, LLP is investigating potential claims against Synopsys, Inc. regarding alleged violations of federal securities laws, with a deadline for investors to seek lead plaintiff status by December 30, 2025 [2][4]. Group 1: Allegations Against Synopsys - The complaint alleges that Synopsys and its executives made false or misleading statements and failed to disclose critical information about the impact of their focus on artificial intelligence customers on the Design IP business [4]. - It is claimed that the increased focus on AI customers was deteriorating the economics of the Design IP business, leading to negative financial impacts [4]. - The complaint also states that positive statements made by the defendants regarding the company's business and prospects were materially misleading [4]. Group 2: Financial Performance - On September 9, 2025, Synopsys reported third quarter 2025 financial results, revealing quarterly revenue of $1.740 billion, which was below the prior guidance of $1.755 billion to $1.785 billion [5]. - The net income for the quarter was reported at $242.5 million, marking a 43% decline year-over-year from $425.9 million in the third quarter of 2024 [5]. - The Design IP segment accounted for approximately 25% of total revenue, reporting $426.6 million, a 7.7% decline year-over-year, with guidance indicating a full-year decline of at least 5% in fiscal 2025 [5]. Group 3: Market Reaction - Following the financial results announcement, Synopsys's stock price fell by $216.59, or 35.8%, closing at $387.78 per share on September 10, 2025, with unusually heavy trading volume [6].
SHAREHOLDER ACTION REMINDER: Faruqi & Faruqi, LLP Announces that Synopsys Investors Have Opportunity to Lead Class Action Lawsuit