Synopsys, Inc. (SNPS) Faces Securities Class Action Amid Q325 Results Revealing IP Business Problems -- Hagens Berman

SAN FRANCISCO, Nov. 4, 2025 /PRNewswire/ -- A securities fraud class action, styled Kim v. Synopsys, Inc., et al., No. 26-:cv-09410 (N.D.CA) has been filed and seeks to represent investors who purchased or otherwise acquired Synopsys, Inc. (NASDAQ: SNPS) securities between December 4, 2024 and September 9, 2025.

The lawsuit was filed after Synopsys announced disappointing Q3 2025 financial results, blaming underperformance in its IP business.

The development, which sent the price of Synopsys shares cratering $216.59 (-35%) on September 10, 2025, has prompted national shareholders rights firm Hagens Berman to investigate alleged claims that Synopsys misled investors about its customer risks and growth prospects.

The firm urges investors in Synopsys who suffered significant losses to submit your losses now. The firm also encourages persons with knowledge who may be able to assist in the investigation to contact its attorneys.

Class Period: December 4, 2024 – September 10, 2025
Lead Plaintiff Deadline: December 30, 2025
Visit:www.hbsslaw.com/investor-fraud/snps
Contact the Firm Now: [email protected]
                                       844-916-0895

Synopsys, Inc. (SNPS) Securities Class Action:

Synopsis delivers silicon design, IP, simulation and analysis solutions and design services to its customers. The company has two reportable segments – Design IP and Design Automation.

The litigation is focused on the propriety of Synopsys' assurances regarding the sustainability of revenue growth in its Design IP business. Design IP includes the company's interface, foundation, security, and embedded processor IP, IP subsystems, and IP implementation services.

In the past, Synopsis has touted its double-digit revenue growth in its Design IP business "as customers rely on Synopsis IP to minimize integration risk and speed time to market" and "our leading foundation and interface IP also expedites customer adoption of the latest protocols and leading-edge process nodes."

The lawsuit alleges that Synopsis made false and misleading statements while failing to disclose crucial information to investors about its business and prospects. More specifically, it claims that the company's increased focus on AI customers, which require additional customization, was deteriorating the economics of its Design IP business and, as a result, "certain road map and resource decisions" were unlikely to "yield their intended results."

Investors learned the truth on September 9, 2025, when Synopsys reported its Q3 2025 EPS of just $1.50, down 45% from the prior year quarter and down 33% sequentially. Synopsys mainly blamed the results on a nearly 8% decline in Design IP revenues as compared to the prior year quarter and acknowledged that "we need to pivot our IP resources and roadmap to the highest-growth opportunities."

This news drove the price of Synopsys shares down 36% the next day, its worst-ever single-day percentage decline since going public in 1992.

"We're investigating whether Synopsys may have misled investors about materialized risks to sustained Design IP revenue growth," said Reed Kathrein, the Hagens Berman partner leading the investigation.

If you invested in Synopsys and have substantial losses, or have knowledge that may assist the firm's investigation, submit your losses now »

If you'd like more information and answers to frequently asked questions about the Synopsys case and our investigation, read more »

Whistleblowers: Persons with non-public information regarding Synopsys should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Reed Kathrein at 844-916-0895 or email [email protected].

About Hagens Berman
Hagens Berman is a global plaintiffs' rights complex litigation firm focusing on corporate accountability. The firm is home to a robust practice and represents investors as well as whistleblowers, workers, consumers and others in cases achieving real results for those harmed by corporate negligence and other wrongdoings. Hagens Berman's team has secured more than $2.9 billion in this area of law. More about the firm and its successes can be found at hbsslaw.com. Follow the firm for updates and news at @ClassActionLaw. 

SOURCE Hagens Berman Sobol Shapiro LLP