Synopsys Securities Class Action Advances as Law Firms Urge Investors to Seek Lead Role by Dec. 30
Investors say an AI pivot masked problems in the Design IP unit revealed by a weak third-quarter report.
Overview
- Multiple investor firms, including Rosen, Kahn Swick & Foti, The Schall Law Firm, DJS Law Group, and Robbins LLP, are recruiting applicants to move for lead-plaintiff status by December 30, 2025.
- The case is pending in the Northern District of California as Kim v. Synopsys, Inc., et al., No. 25-cv-09410.
- The complaint alleges violations of Sections 10(b) and 20(a) of the Exchange Act and SEC Rule 10b-5 based on claims that Synopsys downplayed how AI-customer customization eroded Design IP economics.
- The alleged class period runs from December 4, 2024 through September 9, 2025, and the class has not been certified, leaving investors unrepresented unless they retain counsel.
- On September 9, 2025, Synopsys reported Q3 revenue of $1.740 billion versus prior guidance of $1.755–$1.785 billion, net income of $242.5 million (down 43% year over year), and Design IP revenue of $426.6 million (down 7.7%), guided to at least a 5% full-year Design IP decline, and the stock fell 35.8% to $387.78 on September 10.