Investors of SLP have a chance to get involved in the fraud investigation of Simulations Plus, Inc., led by the Schall Law Firm.
Simulations Plus, Inc. (NASDAQ: SLP), a publicly traded company, is currently under investigation for potential securities law violations following a significant earnings report miss and related disclosures.
On July 14, 2025, Simulations Plus released its third-quarter 2025 financial results, cutting its earlier guidance by about $14 million at the midpoint due to margin erosion, lower renewal rates, and a slowdown in services and software segments. The company also took a substantial $77 million impairment charge related to prior acquisitions to realign asset values with current market conditions. These disclosures led to concerns, as Simulations Plus terminated its auditor shortly after[1][3].
Prior to these events, Simulations Plus had changed auditors to Grant Thornton LLP in April, and in June announced disappointing preliminary 3Q results, citing market uncertainties as headwinds. This announcement led to a sharp 24% stock price drop. During this period, issues were highlighted regarding the integration of their 2024 acquisition, Pro-ficiency Holdings, and questions arose about the effectiveness of their internal financial controls[2].
The disclosures and subsequent stock price declines have prompted class action securities fraud investigations by multiple law firms, including The Law Offices of Frank R. Cruz, Bleichmar Fonti & Auld LLP, and others. Investors who suffered losses on SLP stock are being urged to contact these firms for potential participation in class action lawsuits and to explore claims to recover losses. Deadlines for lead plaintiff motions are approaching, such as September 22 and September 30, 2025 for some firms[1][2][4][5].
The investigation focuses on whether Simulations Plus misrepresented its financial condition and internal controls, causing investor losses when the truth emerged through earnings misses and the large impairment charge. Preliminary third-quarter sales figures released in June were lower than expectations at $19 million to $20 million, and the actual Q3 2025 sales were $20.4 million, falling short of the $20.9 million consensus estimate[5].
If you are a shareholder of Simulations Plus, Inc. and have suffered a loss, The Schall Law Firm encourages you to contact them to participate in the investigation. The Schall Law Firm is investigating Simulations Plus, Inc. for potential securities law violations[6].
References: 1. Benzinga, "Simulations Plus Sees Weaker Demand Persist, Outlook Softens," July 15, 2025. 2. Business Wire, Simulations Plus, Inc. Press Release, June 6, 2025. 3. The Law Offices of Frank R. Cruz, "Simulations Plus, Inc. Announces Change in Auditor and Disappointing Preliminary 3Q Results," July 16, 2025. 4. Bleichmar Fonti & Auld LLP, "Simulations Plus, Inc. Announces Change in Auditor and Disappointing Preliminary 3Q Results," July 16, 2025. 5. The Schall Law Firm, "Simulations Plus, Inc. Announces Change in Auditor and Disappointing Preliminary 3Q Results," July 16, 2025. 6. The Schall Law Firm, Contact Information.
- Despite the cloud of securities law violations investigations, there is a call for personal-finance management among shareholders of Simulations Plus, Inc., especially as deadlines for lead plaintiff motions approach.
- The slowdown in the services and software segments, lower renewal rates, and margin erosion seen in Simulations Plus's third-quarter 2025 financial results might raise concerns for investors in the business sector, leading to potentially significant losses.
- Financial news agencies and law firms are tracking the investigation into Simulations Plus, Inc. concerning misrepresented financial conditions and internal controls, which could create waves in the investing community given the potential implications for business ethics and securities law compliance.
