Overview

A class action lawsuit has been filed against Synopsys, Inc. (“Synopsys” or the “Company”) and certain of the Company’s former senior executive officers alleging violations of the federal securities laws. The Company’s common stock trades on the NASDAQ exchange under the symbol “SNPS.”

The Synopsys class action lawsuit was brought on behalf of all persons and entities who purchased or otherwise acquired Synopsys securities between December 4, 2024, and September 9, 2025, both dates inclusive, (the “Class Period”).

The lawsuit alleges that Synopsys and its executives misled investors about the health and growth prospects of the company’s Design IP business, a key driver of its overall revenue. Synopsys provides electronic design automation software used to design and test integrated circuits and operates in two main segments: Design Automation and Design IP. The Design IP segment offers pre-designed, silicon-proven components that semiconductor manufacturers use to accelerate chip and system-on-chip (SoC) development. It includes Interface IP products, which provide pre-built modules for widely used communication protocols. Over recent years, the Design IP business had been Synopsys’s fastest-growing division, increasing from 25% of total revenue in fiscal 2022 to 31% in fiscal 2024.

According to the lawsuit, throughout the class period, defendants made materially false and misleading statements and failed to disclose adverse information about the company’s business operations and prospects. Specifically, defendants allegedly did not disclose that Synopsys’s growing focus on artificial intelligence customers required additional customization work, which was significantly reducing the profitability and scalability of its Design IP business. The company’s “road map and resource decisions” were reportedly not yielding their intended results, and this deterioration in the Design IP segment’s economics was having a material negative impact on financial performance. Despite these issues, defendants continued to make positive statements about Synopsys’s business, growth trajectory, and competitive positioning, which the lawsuit claims were misleading and lacked a reasonable basis.

The truth began to emerge on September 9, 2025, when Synopsys released its third-quarter 2025 financial results after market hours. The company reported quarterly revenue of $1.74 billion—below its prior guidance range of $1.755 to $1.785 billion—and net income of $242.5 million, representing a 43% year-over-year decline from $425.9 million in the same quarter of 2024. Management further revealed that the company’s Design IP segment had “underperformed expectations,” generating $426.6 million in revenue, a 7.7% year-over-year decline, and accounting for only 25% of total revenue. Synopsys also provided guidance implying that Design IP revenues would fall by at least 5% on a full-year basis for fiscal 2025.

Following this disclosure, Synopsys’s stock price dropped sharply, falling $216.59 per share, or 35.8%, to close at $387.78 on September 10, 2025, on unusually heavy trading volume. The lawsuit alleges that, as a result of defendants’ false and misleading statements and omissions, investors were deceived about the company’s true financial condition and growth potential. When the truth about the underperformance of the Design IP business was revealed, Synopsys’s stock price plummeted, causing significant losses to investors.

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If you purchased or otherwise acquired Synopsys securities between December 4, 2024, and September 9, 2025, both dates inclusive, and you wish to serve as lead plaintiff in this lawsuit, we encourage you to submit your information to DiCello Levitt LLP via the form on this page. 

You can also contact DiCello Levitt partner Brian O’Mara by calling (888) 287-9005 or at investors@dicellolevitt.com. 

The deadline to apply to the Court to serve as lead plaintiff in the Synopsys class action lawsuit is December 30, 2025.