Class Action Lawsuit Filed Against Synopsys, Inc. by Robbins LLP

Robbins LLP Announces Class Action Against Synopsys, Inc.



In a significant development for investors, Robbins LLP recently disclosed that a class action lawsuit has been filed against Synopsys, Inc. (NASDAQ: SNPS) on behalf of all shareholders who acquired the company’s securities from December 4, 2024, to September 9, 2025. Synopsys, renowned for its advanced electronic design automation (EDA) software, which is crucial in designing and testing integrated circuits, faces serious allegations of misleading its investors.

Background of the Lawsuit



According to court documents, the lawsuit stems from Synopsys’s failure to transparently communicate critical information about its Design IP business's performance during the specified period. The complaint claims that the company’s intensified focus on catering to artificial intelligence clients is leading to economic setbacks within its IP division. Specifically, the allegations highlight that Synopsys did not disclose:

1. The detrimental effect of its shift towards AI-focused clientele, which demands significant customization and is negatively impacting the profitability of the Design IP segment.
2. The likelihood that several of its strategic decisions regarding resources and roadmap developments would not yield the anticipated results.
3. The overall adverse effects this situation would have on the company’s financial health.

These failures to disclose crucial performance data allegedly resulted in significant financial losses for investors.

Financial Implications on Synopsys



The core of the grievance became evident when Synopsys released its third-quarter financial results on September 9, 2025. The company reported quarterly revenues of $1.740 billion, which fell short of its forecasts that ranged between $1.755 billion and $1.785 billion. Additionally, net income plummeted to $242.5 million, marking a dramatic 43% decrease compared to the same period the previous year, which was $425.9 million.

Notably, the Design IP segment, which constitutes about 25% of Synopsys’s total revenue, reported a revenue contraction of 7.7% year over year, totaling $426.6 million. The outlook provided by Synopsys indicated further declines in Design IP revenues, projecting a downturn of at least 5% for the entire fiscal year of 2025.

Consequently, these revelations incited a drastic reaction from the stock market; the share price of Synopsys plummeted by $216.59, a staggering 35.8% drop, closing at $387.78 per share on September 10, 2025.

Next Steps for Affected Investors



Robbins LLP has made it clear that shareholders who wish to take an active role in the lawsuit as lead plaintiffs must submit the necessary documentation to the court by December 30, 2025. A lead plaintiff represents the collective interests of all investors involved in the class action, possibly shaping the direction of the litigation.

It is essential to highlight that individuals can opt to remain passive members of the class without participating in the proceedings while still being eligible for any potential recovery.

Robbins LLP operates on a contingency fee basis, meaning investors will not bear any costs unless the litigation results in a favorable outcome. This is an important aspect for shareholders concerned about incurring legal expenses while pursuing justice for their losses.

About Robbins LLP



Since its establishment in 2002, Robbins LLP has gained recognition as a leader in shareholder rights litigation. Their commitment to aiding shareholders in recovering losses and enhancing corporate governance has established them as a trusted advocate in the field. The firm aims not only to secure just recoveries for shareholders but also to hold corporate executives accountable for their actions.

In case of any updates regarding the class action against Synopsys, investors are encouraged to sign up for Stock Watch to receive timely notifications and alerts when corporate executives engage in misconduct. This service is invaluable for shareholders wishing to stay informed and proactive about their investments.


This ongoing case serves as a reminder of the importance of transparency and accountability in corporate communications and the necessity for investors to remain vigilant about the companies in which they invest.

Topics Financial Services & Investing)

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