SAN FRANCISCO, Nov. 19, 2025 (GLOBE NEWSWIRE) -- Synopsys, Inc. (NASDAQ: SNPS), a leading electronic design automation (EDA) company, is facing a significant leadership shakeup and escalating legal pressure, highlighted by the recent departure of its Chief Revenue Officer (CRO).
The company announced in a Form 8-K filing on November 4, 2025, that Rick Mahoney, who had served as CRO for three years, “will no longer serve as Synopsys’ Chief Revenue Officer, effective immediately.” Synopsys stated it is in “advanced stages of its search and expects to announce a replacement shortly.”
The sudden change in executive leadership comes just weeks after a devastating stock decline triggered a securities class action lawsuit, casting a shadow over the company's handling of its critical Design IP business.
Hagens Berman is investigating the alleged claims that Synopsys misled investors about its customer risks and growth prospects. The firm urges investors in Synopsys who suffered significant losses to submit your losses now.
Class Period: Dec. 4, 2024 – Sept. 9, 2025
Lead Plaintiff Deadline: Dec. 30, 2025
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844-916-0895
Synopsys, Inc. (SNPS) Securities Class Action:
The CRO’s departure follows a period of intense scrutiny for Synopsys. The legal challenge stems from the company’s disclosure on September 9, 2025, that its lucrative Design IP segment had “underperformed expectations.” The segment reported a revenue decline of 7.7% year-over-year.
Management attributed the unexpected weakness to a strategic shift toward Artificial Intelligence (AI) customers, which require more complex and customized IP components. This trend, the company noted, "takes longer" and requires "more resources," challenging the favorable economics the segment was known for. Following this news, Synopsys stock plummeted over 35% in a single trading day.
These events have sparked securities class action litigation. The lawsuit alleges that Synopsys and its executives failed to disclose material adverse facts throughout the Class Period, which runs from December 4, 2024, through September 9, 2025.
Plaintiffs contend that during this period, the company's positive statements about its Design IP business were materially misleading, alleging that Synopsys concealed the extent to which the focus on AI customers was deteriorating the segment's profitability.
Hagens Berman’s Investigation
The prominent shareholders rights firm Hagens Berman is actively investigating the claims, focusing specifically on whether Synopsys misled investors by failing to disclose that its heavy push toward AI-focused clients was undermining the core profitability and favorable economics of the Design IP business model.
“We’re looking into whether management may have concealed the severe impact the shift to highly customized AI IP would have on the division's revenue and margins,” said Reed Kathrein, the Hagens Berman partner leading the investigation.
If you invested in Synopsys and have substantial losses, or have knowledge that may assist the firm’s investigation, submit your losses now »
If you’d like more information and answers to frequently asked questions about the Synopsys case and our investigation, read more »
Whistleblowers: Persons with non-public information regarding Synopsys should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Reed Kathrein at 844-916-0895 or email SNPS@hbsslaw.com.
About Hagens Berman
Hagens Berman is a global plaintiffs’ rights complex litigation firm focusing on corporate accountability. The firm is home to a robust practice and represents investors as well as whistleblowers, workers, consumers and others in cases achieving real results for those harmed by corporate negligence and other wrongdoings. Hagens Berman’s team has secured more than $2.9 billion in this area of law. More about the firm and its successes can be found at hbsslaw.com. Follow the firm for updates and news at @ClassActionLaw.
Contact:
Reed Kathrein, 844-916-0895
