Synopsys Sued Over Statements, Silence Before Record Stock Drop

Synopsys Inc. concealed how its shift to artificial intelligence was hindering revenue from the chip-design software maker’s Design IP unit before releasing disappointing financial results and a 36% stock drop, an investor’s proposed class action said.

That plummet—in which Synopsys’ share price closed at $387.78 on Sept. 10—was the stock’s biggest one-day nosedive on record since the company’s 1992 market debut, according to data compiled by Bloomberg.

Synopsys revealed the company’s intellectual property segment had underperformed in the third fiscal quarter of 2025 on Sept. 9.

Before this, the company downplayed the extent to which its elevated AI-customer focus was ...