Synopsys(US:SNPS) Globenewswire·2025-12-19 12:08Core 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]. 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 be appointed to lead the case [3]. Group 2: Company Performance and Allegations - Synopsys provides design automation software products, with its Design IP segment growing from 25% of revenue in 2022 to 31% in 2024 [4]. - The company 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]. - Contrary to these claims, it is alleged that Design IP customers required more customization, 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 [6].