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flag Synopsys faces lawsuit for allegedly hiding its Design IP unit's steep decline and poor financial results from investors.

flag Synopsys, Inc. is facing a class action lawsuit alleging it misled investors by failing to disclose declining performance in its Design IP business, which suffered a 7.7% year-over-year drop and a projected full-year decline of at least 5%. flag The lawsuit, filed on behalf of investors who bought stock between December 4, 2024, and September 9, 2025, claims the company’s growing focus on AI clients requiring customization hurt the segment’s economics. flag On September 9, 2025, Synopsys reported third-quarter revenue of $1.74 billion, below its $1.755 billion to $1.785 billion guidance, and a 43% year-over-year drop in net income. flag The stock fell nearly 36% after the results were released. flag Investors who suffered losses during the class period may apply to serve as lead plaintiff by December 30, 2025.

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