Synopsys Investors Face Dec. 30 Deadline in Securities Class Action Over AI, Design IP Disclosures
Plaintiffs allege an AI-focused strategy undermined Design IP economics, a claim now pending in a California court.
Overview
- Multiple firms, including Rosen, DJS Law Group, The Gross Law Firm, and Kahn Swick & Foti via ClaimsFiler, are urging investors to seek lead-plaintiff status by December 30, 2025.
- The putative class covers purchases from December 4, 2024 through September 9, 2025, and some filings also reference investors who received Synopsys shares in the Ansys acquisition.
- Complaints assert that increased customization for artificial intelligence customers degraded the economics of Synopsys’ Design IP business and rendered certain roadmap and resource decisions ineffective.
- Filings cite September 9, 2025 disclosures showing Q3 revenue of $1.740 billion below guidance, a 43% year-over-year net income decline to $242.5 million, Design IP revenue down 7.7% to $426.6 million, and a 35.8% share-price drop the next day.
- The actions, including Kim v. Synopsys in the Northern District of California, allege violations of Exchange Act §§10(b) and 20(a) and SEC Rule 10b-5, and notices state no class has been certified yet.