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Synopsys Investors Face Dec. 30 Deadline to Seek Lead Role in Securities Class Action Over Design IP Disclosures

Plaintiffs allege an AI-focused shift hurt the Design IP segment and was not properly disclosed before weak Q3 results and a steep share-price drop.

Overview

  • Kim v. Synopsys, Inc. is filed in the U.S. District Court for the Northern District of California, covering trades from December 4, 2024 through September 9, 2025, and the class has not been certified.
  • Multiple firms, including DJS Law Group, The Schall Law Firm, Robbins LLP, Kahn Swick & Foti, Rosen Law Firm, and Hagens Berman, are soliciting investors and seeking lead-plaintiff applications by December 30, 2025.
  • The complaint asserts violations of §§10(b) and 20(a) of the Exchange Act and SEC Rule 10b-5, claiming Synopsys made false or misleading statements about its business and prospects.
  • Plaintiffs point to September 9, 2025 results showing revenue of $1.740 billion below guidance, net income of $242.5 million down 43% year over year, and Design IP revenue of $426.6 million down 7.7%, with guidance implying at least a 5% full-year Design IP decline.
  • Following the disclosure, Synopsys shares fell $216.59, or about 35.8%, on September 10, 2025, as plaintiffs contend that AI customers’ customization needs were deteriorating Design IP economics that investors had not been told about.