Synopsys Inc. Faces Multiple Securities Class‑Action Allegations
A series of filings has emerged on 10‑11 November 2025, alleging that Synopsys Inc. (NASDAQ: SNPS) and certain senior executives engaged in securities law violations. The lawsuits claim that investors who purchased or otherwise acquired Synopsys securities suffered losses due to the company’s conduct.
Litigation Overview
| Date | Filing | Key Allegations | Litigation Identifier |
|---|---|---|---|
| 10 Nov 2025 | Kim v. Synopsys, Inc. | Violations of §§10(b) and 20(a) of the Securities Exchange Act; failure to disclose material information relating to intellectual‑property (IP) business challenges revealed in Q3 2025 earnings. | No. 26‑cv‑09410 (N.D. Cal.) |
| 10 Nov 2025 | Kim v. Synopsys, Inc. | Claims that executive officers misrepresented the state of the company’s IP portfolio, contributing to a decline in share price. | No. 25‑cv‑09410 (N.D. Cal.) |
| 10 Nov 2025 | Investor‑alert filings | Multiple law firms—including Pomerantz LLP, Levi & Korsinsky, Hagens Berman, Bronstein, Gewirtz & Grossman LLC, Robbins Geller Rudman & Dowd LLP, and Bernstein Liebhard LLP—have issued notices inviting shareholders with substantial losses to join or lead the action. |
Legal Context
The lawsuits cite violations of the Securities Exchange Act of 1934, specifically:
- Section 10(b) – prohibition on fraudulent statements in connection with the purchase or sale of securities.
- Section 20(a) – duty of disclosure to provide materially correct information to investors.
The plaintiffs contend that the company’s public statements and internal communications misled investors regarding the status of Synopsys’s IP assets and the impact of these assets on future revenue streams. The allegations arose after the company reported a downturn in its IP business during the third quarter of 2025, a period that coincided with a significant drop in the company’s share price.
Current Status
- The filings were made in the Northern District of California and the Southern District of New York, indicating that the cases may proceed in multiple federal venues.
- Investors are urged to consult with legal counsel within specified deadlines, which vary by firm but generally fall within a 30‑day window from the filing date.
- The lawsuits have not yet been adjudicated; Synopsys Inc. has not released an official response in the public domain as of the latest news updates.
Market Impact
Synopsys Inc. trades on the Nasdaq and reported a closing price of $400.77 on 9 November 2025. The company’s 52‑week high and low are $651.73 and $365.74, respectively. With a market capitalization of $73.08 billion and a price‑earnings ratio of 30.8, the firm is a significant player in the information technology and software sector, primarily offering electronic design automation solutions.
The lawsuits highlight the importance of accurate disclosure in the technology sector, where intellectual property can constitute a large portion of a company’s valuation. Investors should monitor the development of the litigation and assess the potential impact on Synopsys’s stock performance and shareholder value.
