Core Points - A securities fraud class action has been filed against Synopsys, Inc. for allegedly misleading investors regarding its customer risks and growth prospects, following disappointing Q3 2025 financial results [1][2][4] - The lawsuit covers the period from December 4, 2024, to September 10, 2025, and claims that Synopsys made false statements about the sustainability of revenue growth in its Design IP business [3][4] - Synopsys reported a Q3 2025 EPS of $1.50, a 45% decline year-over-year and a 33% decline sequentially, primarily due to an 8% drop in Design IP revenues [5] Company Overview - Synopsys, Inc. provides silicon design, IP, simulation, and analysis solutions, operating in two segments: Design IP and Design Automation [3] - The Design IP segment includes various IP products and services, which are critical for minimizing integration risk and expediting customer adoption of new technologies [4][5] Financial Impact - Following the announcement of disappointing financial results, Synopsys shares plummeted by $216.59, representing a 35% decrease on September 10, 2025, marking the worst single-day decline since the company went public in 1992 [2][5] - The lawsuit alleges that the company's focus on AI customers, which require more customization, negatively impacted the economics of its Design IP business [5]