Pomerantz Law Firm Investigates Simulations Plus for Potential Securities Fraud

What's Happening?

Pomerantz LLP has initiated an investigation into Simulations Plus, Inc. regarding potential securities fraud or other unlawful business practices. This action follows the company's recent financial disclosures for its third fiscal quarter, which revealed a significant financial downturn. Simulations Plus reported sales of $20.4 million, falling short of the expected $20.9 million. Additionally, the company announced a net loss of $67.3 million, including a non-cash impairment charge of $77.2 million, contrasting sharply with a net income of $3.1 million in the same period the previous year. The company's stock price subsequently dropped by 25.76%, closing at $12.97 per share on July 15, 2025. The firm has also revised its fiscal 2025 earnings guidance downward and initiated a restructuring plan aimed at reducing costs and improving efficiency.

Why It's Important?

The investigation by Pomerantz LLP could have significant implications for Simulations Plus and its investors. If the firm finds evidence of securities fraud, it could lead to legal action and potential financial penalties for the company. This situation highlights the risks associated with investing in companies undergoing financial difficulties and restructuring. For investors, the outcome of this investigation could affect the value of their investments and the company's future financial health. The broader market may also view this as a cautionary tale about the importance of transparency and accurate financial reporting.

What's Next?

As the investigation progresses, stakeholders will be closely monitoring any developments. If Pomerantz LLP uncovers evidence of wrongdoing, it could lead to a class-action lawsuit against Simulations Plus. The company may also face increased scrutiny from regulators and investors. In the meantime, Simulations Plus will likely continue its restructuring efforts to stabilize its financial situation and regain investor confidence. The outcome of this investigation could influence the company's strategic decisions and its ability to attract future investments.