Synopsys, Inc. (SNPS) Investors are Notified that Company has been Sued for Securities Fraud after 36% Stock Drop and are Urged to Contact BFA Law

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]. 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]. Allegations and Financial Performance - The lawsuit claims that Synopsys misled investors by stating that customers relied on its IP to minimize integration risk and that the company was experiencing strength in Europe and South Korea. However, it is alleged that customers began requiring more customization for IP components, negatively impacting the economics of the Design IP business and jeopardizing the business model [5]. - On September 9, 2025, Synopsys reported Q3 2025 financial results, revealing that its Design IP segment generated revenue of $425.9 million, a 7.7% year-over-year decline, and net income of $242.5 million, a 43% year-over-year decline. The company indicated that increased customization demands from customers were leading to longer timelines and more resource requirements, prompting discussions about changing its business model [6]. Stock Market Reaction - Following the release of the disappointing financial results, Synopsys's stock price fell by $217.59 per share, nearly 36%, from $604.37 on September 9, 2025, to $387.78 on September 10, 2025 [6].