The filed complaint alleges that Synopsys, Inc. made materially false and/or misleading statements and/or failed to disclose that: (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 (4) 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.