#United States #New York #Securities Law #Faruqi & Faruqi #Synopsys

Insights on the Synopsys Class Action Lawsuit

Faruqi & Faruqi, LLP, a prominent securities law firm in the United States, is actively engaging with investors of Synopsys, Inc. regarding a significant class action lawsuit. With the deadline to apply for lead plaintiff status set for December 30, 2025, it’s crucial for affected investors to be aware of their legal options and potential compensation avenues.

Background of the Case

Synopsys, a key player in the electronic design automation space, is currently facing allegations that it and its executives have breached federal securities laws. The accusations mainly revolve around the firm’s failure to sufficiently disclose critical information about its business operations and financial conditions, particularly in relation to its growing focus on artificial intelligence customers.

Between December 4, 2024, and September 9, 2025, many investors purchased securities in Synopsys. The firm’s management had previously provided optimistic forecasts about financial performance, yet the third quarter results released on September 9, 2025, revealed a stark reality; revenue fell short of expectations, leading to a 43% year-over-year drop in net income.

Disappointing Financial Outcomes

In the third quarter of 2025, Synopsys reported revenues of $1.740 billion against a prior guidance of $1.755 billion to $1.785 billion. Moreover, the Design IP segment, which constitutes roughly one-fourth of total revenue, reported a decline, generating only $426.6 million–a 7.7% decrease compared to the previous year. These figures highlight significant issues within the company that call into question prior assurances made by its executives.

The aftermath was immediate; the day after releasing the dismal results, Synopsys's stock experienced a steep decline, closing at $387.78 per share, marking a loss of 35.8% in value due to heavy trading.

Understanding the Role of Lead Plaintiff

In a class action lawsuit, a lead plaintiff is appointed to represent the interests of all class members. This individual or entity typically has the largest financial stake in the matter and is deemed capable of representing the group effectively. While any affected party can move to serve as a lead plaintiff, it’s important to note that participation in this role doesn’t impact the ability of other members to receive a share of any recovery from the lawsuit.

Investors with expertise or information about Synopsys’s practices, including whistleblowers, former employees, or current stakeholders, are encouraged to reach out to Faruqi & Faruqi for guidance. The firm is committed to ensuring that all relevant voices are heard throughout the litigation process.

How to Get Involved

For those who may have suffered financial losses due to their investments in Synopsys during the specified period, discussing legal rights with counsel is crucial. Investors are urged to contact Joshua (Josh) Wilson at Faruqi & Faruqi by phone at 877-247-4292 or 212-983-9330 (Ext. 1310) for a confidential consultation. Interested parties can also find more information on the Synopsys class action by visiting Faruqi & Faruqi's website.


As the deadline looms, it’s imperative for investors to assess their position promptly. Understanding one's role in potential recovery and engaging with experienced attorneys can help ensure that investor rights are safeguarded throughout this legal challenging period.

Stay informed with ongoing developments regarding this case, including updates from legal proceedings and changes in Synopsys’s business landscape.

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Disclaimer: This article is intended for informational purposes only and does not constitute legal advice. Prospective clients should consult an attorney for personalized legal guidance.