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Robbins Geller Rudman & Dowd LLP Announces Class Action Lawsuit for Synopsys, Inc. Investors

On November 13, 2025, Robbins Geller Rudman & Dowd LLP, a prominent law firm specializing in securities fraud and shareholder litigation, announced a significant class action lawsuit against Synopsys, Inc. (NASDAQ: SNPS). This legal action, formally titled Kim v. Synopsys, Inc., No. 25-cv-09410, is underway in the Northern District of California, and it highlights major concerns regarding the company's financial disclosures and operational strategies.

Background of the Case

Synopsys, a leading provider of electronic design automation (EDA) software for integrated circuit design and testing, has faced scrutiny over its business practices. The class action lawsuit accuses the company and specific executives of violating the Securities Exchange Act of 1934 by failing to disclose critical information that adversely affected its financial performance.

According to the allegations presented in the lawsuit, Synopsys focused excessively on servicing customers in the artificial intelligence (AI) sector, resulting in significant challenges for its Design IP business segment. Reports indicate that this shift in focus was not disclosed to investors, thereby distorting the financial expectations and actual performance of the company.

Financial Performance Highlights

The complaint gained traction when Synopsys revealed its third-quarter financial results on September 9, 2025. The report indicated that the company’s IP business had underperformed, with quarterly revenues reaching $1.740 billion, falling short of its guidance of $1.755 billion to $1.785 billion. Furthermore, Synopsys reported a staggering 43% decrease in net income compared to the previous year, dropping from $425.9 million in 2024 to $242.5 million in the third quarter of 2025.

Concerningly, Synopsys's Design IP segment—integral to its revenue—accounted for roughly 25% of its total earnings but experienced a 7.7% year-over-year decline. The company's projections suggested an ongoing decline of at least 5% in Design IP revenues for the fiscal year 2025. In reaction to this negative news, Synopsys's stock price plummeted by nearly 36%.

The Role of the Lead Plaintiff

Pursuant to the Private Securities Litigation Reform Act of 1995, any investor who acquired Synopsys securities during the class period has the opportunity to apply for the title of lead plaintiff. This individual is typically the one with the most financial stake in the case while also representing the interests of the broader group of investors. Notably, a lead plaintiff can appoint a law firm of their choice to manage the litigation.

Investors interested in participating in the class action must submit their applications by December 30, 2025. Potential plaintiffs are encouraged to reach out to Robbins Geller attorneys by calling 800-449-4900 or via email for further assistance.

About Robbins Geller Rudman & Dowd LLP

Robbins Geller Rudman & Dowd LLP has established itself as a leading player in the realm of securities litigation. Over the past five years, it has ranked #1 for securing the highest monetary relief for investors, championing significant recoveries including a historic $7.2 billion from the Enron Corp. Securities Litigation. With a robust team of 200 lawyers across 10 offices, the firm is set to navigate the complexities of this class action lawsuit and advocate for the rights of Synopsys investors.

For more detailed information on the Synopsys investor class action lawsuit or to engage with the firm's resources, you can visit their dedicated site at Robbins Geller. Past performance does not guarantee future results, thus all potential investors are advised to act prudently in these litigation matters.