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Faruqi & Faruqi Issues Reminder to Synopsys Investors

Faruqi & Faruqi, LLP, a prominent national securities law firm, has recently initiated an investigation into potential claims against Synopsys, Inc. With a looming deadline of December 30, 2025, for the lead plaintiff in a federal securities class action, current and former investors are urged to assess their legal options regarding their investments in Synopsys.

The Class Action Overview

The firm is focusing on investors who purchased or acquired securities in Synopsys between December 4, 2024, and September 9, 2025. Allegations against Synopsys include misrepresenting essential aspects of its business and failing to adequately disclose critical issues affecting its economic performance.

The core of the accusations is troubling. It is claimed that Synopsys's increased commitment to serving artificial intelligence clients, which requires tailored solutions, has been adversely impacting the profitability of its Design IP segment. Furthermore, investors were allegedly misled about future operational strategies that were not expected to produce the desired outcomes, which ultimately harmed the firm's financial results.

Financial Results and Impact

On September 9, 2025, after the market closed, Synopsys announced third-quarter financial results that fell short of investor expectations, notably reporting revenues of $1.740 billion against a forecasted range of $1.755 billion to $1.785 billion. Additionally, their net income saw a staggering 43% decline year-over-year, falling from $425.9 million to $242.5 million. With the Design IP segment contributing merely 25% of total revenue and experiencing a year-over-year decrease of 7.7%, the implications of these results have raised considerable concerns among shareholders.

The market responded sharply, with Synopsys shares plummeting by 35.8% to close at $387.78 per share the following day. This drastic shift in stock value not only reflects the immediate loss to investors but also raises questions regarding the transparency of the company's communications surrounding its operational challenges.

Investor Guidance

Any Synopsys investor affected by these developments should consider their legal rights carefully and may want to contact Faruqi & Faruqi directly for guidance. James (Josh) Wilson, a Senior Partner at the firm, is advocating for those affected to discuss their situations and explore the possibilities for recourse against Synopsys.

In the context of class action lawsuits, the court will appoint a lead plaintiff, representing the interests of the broader investor class. The firm emphasizes that participation as a lead plaintiff or being an absent class member does not affect the possibility of recovering damages from the lawsuit. Thus, all affected investors have a role to play in the proceedings.

Conclusion

Faruqi & Faruqi reminds investors that the deadline for seeking the role of lead plaintiff is December 30, 2025. Additionally, they are keen to hear from anyone with insights into Synopsys's conduct, particularly whistleblowers, former employees, or shareholders. This is a pivotal moment for those engaged with Synopsys as they navigate the potential fallout from the recent financial disclosures and the class action lawsuit's unfolding narrative. For more information about this pressing matter, interested parties can visit Faruqi & Faruqi’s website or reach out directly at 877-247-4292.