Law Firm Launches Investigation into Synopsys
The law firm Kahn Swick & Foti, LLC announced it has started an investigation into the officers and directors of the electronic design automation company Synopsys, Inc. The firm is led by a former Attorney General of Louisiana. The specific reasons for the investigation were not detailed in the announcement.
- The investigation by Kahn Swick & Foti centers on whether Synopsys' officers and directors breached their fiduciary duties in connection with a lawsuit filed by Cangrade, Inc. in February 2025. - The Cangrade lawsuit alleges misappropriation of trade secrets, breach of contract, and professional negligence related to a software audit Synopsys was to perform as part of a potential merger. A court has since denied a motion by Synopsys to dismiss the case, allowing it to move forward. - This is not the only legal challenge facing the company; other law firms have filed class-action lawsuits on behalf of shareholders. These suits allege that Synopsys made misleading statements about the health of its Design IP business, particularly concerning the impact of its focus on artificial intelligence customers. - These separate lawsuits followed a significant 35.8% drop in Synopsys' stock price on September 10, 2025, after the company announced disappointing third-quarter 2025 financial results and lowered its guidance for the Design IP segment. - In fiscal year 2025, Synopsys' CEO Sassine Ghazi's total compensation was $19.6 million, a 28% decrease from the previous year, which the company attributed to a failure to meet specific financial targets. However, for the 2024 fiscal year, Ghazi's total compensation was $27.4 million. - The investigation comes after a period of major corporate activity for Synopsys, including the acquisition of Ansys for approximately $35 billion, a deal that received overwhelming approval from Ansys stockholders.
