Investors of Synopsys, Inc. Provided Opportunity to Head Class Action Lawsuit

Announcement of Class Action Lawsuit Against Synopsys, Inc.

On November 6, 2025, Robbins Geller Rudman & Dowd LLP announced significant developments pertaining to Synopsys, Inc., a company known for its electronic design automation software products. Investors who have incurred substantial losses are now afforded the opportunity to step forward as lead plaintiffs in a class action lawsuit titled Kim v. Synopsys, Inc., filed in the Northern District of California.

Background of the Case

The lawsuit addresses serious allegations against Synopsys and certain executives, claiming violations of the Securities Exchange Act of 1934. Synopsys, listed on NASDAQ under the ticker SNPS, provides critical software tools for designing and testing integrated circuits. In this particular case, the focus is on how these tools are affected by a burgeoning emphasis on artificial intelligence customers, which reportedly has caused detrimental financial impacts on the company's Design IP business segment.

Allegations Pointed Out in the Lawsuit

The class action lawsuit articulates that Synopsys failed to disclose crucial information during the class period. The allegations include:
1. Acknowledgment that the intensified focus on AI clientele, which necessitates heightened customization, was adversely affecting the financial viability of the Design IP sector.
2. The statement that certain strategic decisions surrounding development and resource allocation were unlikely to achieve their intended outcomes, thereby detrimental to overall performance.
3. Acknowledgment of the significant adverse effects these issues had on financial results of the company.

Particularly notable is the third quarter financial report released on September 9, 2025, where Synopsys revealed revenue of $1.740 billion, falling short of the previously estimated range of $1.755 to $1.785 billion. Furthermore, the reported net income experienced a drastic decline of 43%, plummeting to $242.5 million compared to $425.9 million the previous year.

Additionally, the report indicated that the Design IP segment, providing roughly 25% of the total revenue, had also seen a decline. It brought in $426.6 million—a 7.7% decrease from the prior year, with full-year projections also indicating further declines.

Market Reaction

Following these revelations, Synopsys's stock price faced a nearly 36% drop, which substantiates the claims made in the lawsuit. This dramatic shift highlights the impact of the company's alleged mismanagement and lack of transparency regarding its financial health.

The Role of Potential Lead Plaintiffs

The Private Securities Litigation Reform Act of 1995 allows any investor who acquired Synopsys securities during the class period to apply for the lead plaintiff position. The lead plaintiff is crucial in representing the collective interests of all affected investors, guiding the legal proceedings, and selecting a law firm to handle the case.

It is essential to mention that participation as a lead plaintiff does not restrict other investors from participating in any potential recovery stemming from this case.

About Robbins Geller Rudman & Dowd LLP

Robbins Geller is a well-respected firm in the realm of securities fraud litigation and has earned significant accolades for its performance in the industry. Over recent years, they have been recognized for securing substantial monetary compensation for investors, including recovering over $2.5 billion for investors in securities-related class actions in 2024 alone. With a strong team of over 200 lawyers across a network of offices, they are considered one of the preeminent plaintiff's firms globally.

For investors impacted by the recent disclosures surrounding Synopsys, there is a compelling opportunity to seek justice and mitigation of their losses through this legal action. Interested parties can initiate action by contacting the Robbins Geller firm for more information regarding participation and potential lead plaintiff application.

In conclusion, this lawsuit not only emphasizes regulatory compliance and corporate accountability but also represents the rights of shareholders to seek redress amidst significant financial losses. Investors must act decisively; the deadline for filing lead plaintiff motions is December 30, 2025.