#USA #New York #Securities Fraud #Pomerantz LLP #Simulations Plus

Investor Alert: Investigating Simulations Plus, Inc.

On July 27, 2025, Pomerantz LLP, a leading law firm renowned for its corporate litigation efforts, announced the initiation of an investigation focusing on claims made by investors of Simulations Plus, Inc. (NASDAQ: SLP). This investigation stems from concerns over possible securities fraud and unlawful business practices associated with the company and its executive officers or directors.

Company Overview and Recent Performance

Simulations Plus, recognized for its role in the pharmaceutical and biotechnology sectors, faced significant scrutiny following its third fiscal quarter financial disclosures. On July 14, 2025, the company revealed disappointing results, reporting sales of $20.4 million, which fell short of analysts' expectations that had predicted $20.9 million. Even more alarming, Simulations Plus incurred a net loss of $67.3 million, which was a drastic decline compared to the prior year’s net income of $3.1 million.

One noteworthy aspect of this report was the diluted loss per share, recorded at $3.35, largely due to a non-cash impairment charge amounting to $77.2 million. Moreover, to compound concerns for investors, Simulations Plus adjusted its earnings forecast for the fiscal year 2025, revising it downward from a previous range of $1.07 to $1.20, now suggesting a range of $0.93 to $1.06.

Stock Impact and Company Response

The immediate reaction in the stock market reflected the severity of the reported figures. Following the release of these financial results, Simulations Plus’s stock plummeted by $4.50 per share, translating to a staggering 25.76% drop, closing at $12.97 on July 15, 2025. This drastic reduction in share price has alarmed investors and raised questions regarding the internal governance of the company.

In light of the challenging operational climate, Simulations Plus disclosed plans to restructure its business. This initiative aims to enhance operational efficiency and reduce costs through workforce adjustments and other cost-cutting measures. However, it raises further questions regarding the underlying financial health and viability of the company moving forward.

Legal Perspective: Role of Pomerantz LLP

Pomerantz LLP has a storied history of advocating for investors affected by corporate malfeasance. Founded by Abraham L. Pomerantz, often referred to as the dean of the class action bar, the firm has been at the forefront of securities litigation for over 85 years. Its reputation is bolstered by numerous successful recoveries of multimillion-dollar damages on behalf of aggrieved class members.

As part of this ongoing investigation, Pomerantz is reaching out to impacted investors to explore their entitlements for class action participation. If you have been affected by the reported dealings of Simulations Plus, the firm encourages you to contact Danielle Peyton via email or phone for guidance.

The investigation by Pomerantz LLP underscores a critical juncture in the landscape of corporate accountability and investor protection. Market participants are thus urged to remain vigilant and informed regarding the developing situation surrounding Simulations Plus.

For continuous updates or to pursue participation in potential legal action, investors are encouraged to remain in touch with legal counsel or investor advocacy groups.

In conclusion, as the financial health of Simulations Plus continues to be scrutinized, the implications of this inquiry could resonate well beyond the immediate stakeholders, potentially impacting broader investor sentiment in the biotech sector.