#USA #San Francisco #Hagens Berman #Grant Thornton #Simulations Plus

Simulations Plus Faces Investor Scrutiny Following Asset Impairments and Audit Dismissal

Investors in Simulations Plus, Inc. (NASDAQ: SLP) are reeling after the company's recent announcements led to a significant share value decline of approximately 25% on July 15, 2025. This drop came on the heels of a troubling Q3 2025 report showing a staggering net loss of $67.3 million, which included a hefty impairment charge of $77.2 million.

The investigation by Hagens Berman, a well-known national shareholder rights law firm, aims to uncover whether Simulations Plus misled its investors regarding asset valuations and the hasty dismissal of its independent auditor, Grant Thornton. The firm's inquiry focuses on the propriety of the company's statements about its asset values, especially following the announcement of an unexpected $77.2 million impairment charge. The charge was attributed to adjustments made to align the firm’s book assets with current market values.

In the wake of this announcement, Simulations Plus also revealed that it had terminated its contract with Grant Thornton the previous week, raising further eyebrows among investors. The company initially hired the firm on April 15, 2025, leading to speculation about the reasons for this abrupt decision. Although Simulations Plus attempted to clarify the dismissal by stating that certain matters regarding segment reporting and internal controls over financial reporting could not be finalized in time for its quarterly report, Grant Thornton disputed this narrative.

In a letter to the Securities and Exchange Commission (SEC), the auditing firm expressed its disagreement with Simulations Plus's characterization of the events. Grant Thornton cited specific concerns raised during its review of the company's financials, indicating that unresolved issues regarding segment reporting and internal controls led to the decision to terminate the engagement.

Reed Kathrein, the partner at Hagens Berman leading the investigation, remarked, “We are examining whether Simulations Plus may have misled investors about the value of its assets and the circumstances around the firing of Grant Thornton.” This inquiry could have significant implications for the company and its executives, as further scrutiny is likely to attract more attention from investors who feel wronged by the circumstances surrounding their financial losses.

Hagens Berman is urging any investors who experienced substantial losses or individuals with relevant information about Simulations Plus to reach out to their attorneys. The firm is particularly interested in connections to the series of events that unfolded and may have contributed to the misleading statements made by the company.

Additionally, whistleblowers with non-public information about Simulations Plus are encouraged to come forward to assist in the investigation, with potential rewards under the SEC Whistleblower program. Reports suggest that whistleblowers could earn up to 30% of successful recoveries made by the SEC.

Hagens Berman has an extensive track record in representing investors and whistleblowers, having secured around $2.9 billion in various cases focused on corporate accountability. The firm has built a robust practice while advocating for those harmed by corporate negligence and misconduct.

With the news still unfolding, investors and stakeholders in Simulations Plus must remain vigilant as this situation progresses. Continued developments from the investigation may lead to significant outcomes for all parties involved, especially as more information becomes available regarding the company's financial practices and compliance with regulations.

Conclusion

In summary, the situation at Simulations Plus remains fluid, with the scrutiny and investigation highlighting broader issues of corporate governance and accountability. Investors who have been adversely affected by the recent revelations are encouraged to seek guidance and protections. As the investigation moves forward, industry watchers are keenly observing how it may affect the company’s future operations and governance practices.