New Probes Target Synopsys and DNOW Inc.
What happened
The law firm Kahn Swick & Foti has commenced an investigation into the officers and directors of Synopsys, Inc. Separately, Rosen Law Firm is encouraging investors in DNOW Inc. to inquire about a securities class action investigation into the company.
Why it matters
- The Synopsys probe stems from a February 2025 lawsuit by Cangrade, Inc., a hiring platform provider, which alleges misappropriation of trade secrets, breach of contract, and professional negligence related to a software audit. - A court in the Northern District of California recently denied a motion from Synopsys to dismiss the Cangrade lawsuit, allowing the case to move forward and prompting the Kahn Swick & Foti investigation into the actions of its officers and directors. - Despite the investigation, Synopsys reported record revenue of $7.054 billion for fiscal year 2025, an increase of approximately 15% year-over-year. - The investigation into DNOW Inc. follows the company's announcement of disappointing fourth-quarter 2025 financial results, which included a significant loss and missed analyst expectations. - On the day the financial results were released, February 20, 2026, DNOW Inc.'s stock price fell by 19.1%. - The securities class action investigation is examining allegations that DNOW may have issued "materially misleading business information" to the public. - In November 2025, DNOW completed a merger with MRC Global Inc. and has since reported challenges with the integration of MRC's ERP system, which affects about 40% of DNOW's business. - Despite the Q4 loss, DNOW's full-year 2025 revenue was $2.8 billion, and the company projects $23 million in first-year cost savings from the MRC Global merger, 35% above the initial target.
Key numbers
- - The Synopsys probe stems from a February 2025 lawsuit by Cangrade, Inc., a hiring platform provider, which alleges misappropriation of trade secrets, breach of contract, and professional negligence related to a software audit.
- Despite the investigation, Synopsys reported record revenue of $7.054 billion for fiscal year 2025, an increase of approximately 15% year-over-year.
- follows the company's announcement of disappointing fourth-quarter 2025 financial results, which included a significant loss and missed analyst expectations.
- On the day the financial results were released, February 20, 2026, DNOW Inc.'s stock price fell by 19.1%.
What happens next
- The securities class action investigation is examining allegations that DNOW may have issued "materially misleading business information" to the public.
- Despite the Q4 loss, DNOW's full-year 2025 revenue was $2.8 billion, and the company projects $23 million in first-year cost savings from the MRC Global merger, 35% above the initial target.
Quick answers
What happened in New Probes Target Synopsys and DNOW Inc.?
The law firm Kahn Swick & Foti has commenced an investigation into the officers and directors of Synopsys, Inc. Separately, Rosen Law Firm is encouraging investors in DNOW Inc. to inquire about a securities class action investigation into the company.
Why does New Probes Target Synopsys and DNOW Inc. matter?
The Synopsys probe stems from a February 2025 lawsuit by Cangrade, Inc., a hiring platform provider, which alleges misappropriation of trade secrets, breach of contract, and professional negligence related to a software audit. A court in the Northern District of California recently denied a motion from Synopsys to dismiss the Cangrade lawsuit, allowing the case to move forward and prompting the Kahn Swick & Foti investigation into the actions of its officers and directors. Despite the investigation, Synopsys reported record revenue of $7.054 billion for fiscal year 2025, an increase of approximately 15% year-over-year. The investigation into DNOW Inc. follows the company's announcement of disappointing fourth-quarter 2025 financial results, which included a significant loss and missed analyst expectations. On the day the financial results were released, February 20, 2026, DNOW Inc.'s stock price fell by 19.1%. The securities class action investigation is examining allegations that DNOW may have issued "materially misleading business information" to the public. In November 2025, DNOW completed a merger with MRC Global Inc. and has since reported challenges with the integration of MRC's ERP system, which affects about 40% of DNOW's business. Despite the Q4 loss, DNOW's full-year 2025 revenue was $2.8 billion, and the company projects $23 million in first-year cost savings from the MRC Global merger, 35% above the initial target.
