Faruqi & Faruqi Investigates Potential Claims Against Synopsys Investors

Investigation into Synopsys, Inc. by Faruqi & Faruqi, LLP

In December 2025, Faruqi & Faruqi, LLP, a notable national securities law firm, announced that it is launching an investigation into Synopsys, Inc. This inquiry follows numerous concerns regarding potential violations of federal securities laws by the company and its executives.

Background of the Investigation

Synopsys, which trades under the NASDAQ symbol SNPS, recently became the focus of scrutiny after significant financial underperformance was disclosed. Between December 4, 2024, and September 9, 2025, investors who purchased securities from Synopsys may have suffered financial losses. Legal partner James (Josh) Wilson is encouraging those affected to reach out, emphasizing the importance of discussing their legal options.

The law firm has set a critical deadline of December 30, 2025, for individuals interested in becoming lead plaintiffs in a federal securities class action lawsuit against Synopsys. This development signifies a significant event, as the court appoints lead plaintiffs based on their financial interest in the relief sought and their suitability as representatives for the class.

Allegations Against Synopsys

The allegations against Synopsys outline various misleading practices. The complaint states that the company may have misrepresented the impact of its shifting focus toward artificial intelligence (AI) customers. This pivot, which demands higher levels of customization, appears to have adversely influenced the profitability of Synopsys's Design IP business. Furthermore, the complaint asserts that critical decisions regarding road mapping and resource allocation were not yielding the expected outcomes, thereby exacerbating financial troubles.

One of the most consequential revelations occurred on September 9, 2025. After market hours, Synopsys reported third-quarter results that starkly contradicted prior forecasts, stating that the company's performance was below expectations. Revenues for that quarter reached $1.740 billion, falling short of the prior guidance range of $1.755 billion to $1.785 billion. Additionally, the company’s net income plummeted by 43% year-over-year, further raising concerns among stakeholders.

Moreover, the Design IP segment, which represents about 25% of the total revenue, showed a 7.7% decrease year-over-year, contributing to a bleak outlook for Synopsys’s fiscal performance in 2025. Following these announcements, the company’s stock experienced a dramatic drop of 35.8%, closing at $387.78 per share on September 10, 2025, amid unusually high trading volumes.

Seeking Justice for Investors

Faruqi & Faruqi reminds all investors of their legal rights and encourages those who might have information regarding Synopsys's conduct to come forward. This includes whistleblowers, former employees, and other stakeholders who can provide insights into the matter.

The legal team at Faruqi & Faruqi is committed to recovering losses suffered by affected investors, having successfully secured hundreds of millions of dollars in past cases since their establishment in 1995.

To learn more about the ongoing investigation and potential legal avenues, individuals are urged to visit Faruqi & Faruqi’s dedicated webpage or contact Josh Wilson directly at 877-247-4292 or 212-983-9330 (Ext. 1310).

As this situation continues to evolve, updates will be provided timely through various channels, including LinkedIn and social media.

This article serves to inform investors about their rights and the actions they can take, highlighting the importance of holding companies accountable for their public disclosures and business practices.