Grabar Law Office is investigating claims on behalf of shareholders of Synopsys, Inc. (NASDAQ: SNPS). The investigation concerns whether certain officers and directors breached the fiduciary duties they owed to the company.

Synopsys, Inc. (NASDAQ: SNPS) provides electronic design automation software products used to design and test integrated circuits. It operates in two segments, Design Automation and Design IP. The company offers Digital and Custom IC Design solution that provides digital design implementation solutions; Verification solution that offers virtual prototyping, static and formal verification, simulation, emulation, field programmable gate array (FPGA)-based prototyping, and debug solutions; FPGA design products that are programmed to perform specific functions; synopsys technology computer-aided design (TCAD), mask synthesis, and manufacturing analytic solutions; and AI-driven EDA solutions. It also provides intellectual property (IP) solutions for UCIe, USB, PCI Express, DDR, Ethernet, MIPI, and HDMI; logic libraries and embedded memories; processor cores, software, and application-specific instruction-set processor tools for embedded applications; security IP solutions; IP solutions for automotive market; and system-on-chip (SoC) infrastructure IP, datapath and building block IP, and verification IP products, as well as mathematical and floating-point components, and Arm AMBA interconnect fabric and peripherals.

WHY? As alleged in a recently filed underlying securities fraud class action complaint, on March 14, 2024, Synopsys (NASDAQ: SNPS) filed with the SEC a registration statement for the acquisition of ANSYS Inc. (NASDAQ: ANSS) which was declared effective on April 17, 2024. On April 17, 2024, Synopsys filed with the SEC a prospectus for the Acquisition of ANSYS. The Acquisition Materials stated that Ansys shareholders would receive $197.00 in cash and 0.345 shares of Synopsys common stock in exchange for each share of Ansys they held at the time of the merger. Unbeknownst to investors, leading up to and at the time of the Acquisition, Synopsys’ historical revenue and profit growth as represented in their Acquisition Materials were artificially inflated by the Company’s unsustainable business practices. Specifically, it is alleged that Defendants misled investors by failing to disclose the following adverse facts: (1) the Company’s growing emphasis on artificial intelligence (“AI”) customers, who require more customization, was weakening the economics of its Design IP business; (2) as a result, certain of the Company’s road map and resource choices were unlikely to achieve their intended outcomes; (3) these issues were materially harming the Company’s financial performance; and (4) as a result of the foregoing, Defendants’ positive statements about the Company’s business, operations, and prospects that when made were materially misleading and/or lacked a reasonable basis.

On September 9, 2025, Synopsys released its Q3 2025 results and acknowledged, for the first time that its Design IP business had “underperformed expectations,” design IP revenue had fallen 8% year-over-year, and the Company would need to “pivot” its road map and IP resources toward stronger-growth areas. Synopsys also revealed that several anticipated IP deals had not materialized and that issues involving a major foundry customer had contributed to the shortfall. The market reacted swiftly on this news with the stock price plunging 35.8% overnight, falling from $604.37 to $387.78 per share, erasing billions in market capitalization.

WHAT YOU CAN DO NOW: If you purchased Synopsys (NASDAQ: SNPS) shares prior to December 4, 2024, or acquired Synopsys shares in exchange for shares of Ansys, Inc. (“Ansys”) common stock, you are encouraged to contact Joshua Grabar at jgrabar@grabarlaw.com, or call 267-507-6085.  You can seek corporate reforms, the return of funds back to the company, and a court approved incentive award at no cost to you whatsoever.