Johnson Fistel, PLLP Begins Investigation on Behalf of Long-Term Shareholders of Synopsys, Inc. (SNPS)

Johnson Fistel, PLLP is investigating potential claims on behalf of current, long-term shareholders of Synopsys, Inc. (NASDAQ: SNPS) against certain of their officers and directors for alleged breaches of fiduciary duty. Shareholders who have held shares continuously since prior to the dates listed below may have standing to seek corporate governance reforms focused on executive oversight, the return of funds to the Company, and a court-approved incentive award, at no cost to them.

A securities class action complaint alleges that throughout the Class Period, Defendants made materially false and/or misleading statements and/or failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants allegedly failed to disclose to investors:

1. The extent to which the Company’s increased focus on artificial intelligence customers, which require additional customization, was deteriorating the economics of its Design IP business;
2. That, as a result, certain “road map and resource decisions” were unlikely to “yield their intended results;”
3. That the foregoing had a material negative impact on financial results; and

That, as a result of the foregoing, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis.