Simulations Plus Under Investigation for Securities Violations
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 6 days ago
0mins
Source: PRnewswire
- Investigation Background: Johnson Fistel, PLLP is investigating potential securities law violations by Simulations Plus, Inc., focusing on misleading statements regarding the company's financial outlook, reporting practices, and internal controls, which could significantly impact investors.
- Revenue Guidance Cut: On June 11, 2025, Simulations Plus revised its fiscal 2025 revenue guidance down from $90 million to $93 million to a range of $76 million to $80 million, primarily due to market uncertainties affecting pharmaceutical and biotech clients, leading to a more than 24% drop in stock price.
- Significant Financial Loss: On July 14, 2025, Simulations Plus reported a net loss of $67.3 million for the third quarter, translating to a diluted loss of $3.35 per share, which included a $77.2 million non-cash impairment charge, raising further investor concerns about the company's financial health.
- Audit Firm Dismissal: The company's Audit Committee dismissed Grant Thornton LLP due to unresolved issues related to financial reporting, resulting in a nearly 26% decline in stock price from $17.47 to $12.97, indicating a lack of confidence in the company's governance and internal controls.
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Analyst Views on SLP
Wall Street analysts forecast SLP stock price to rise
5 Analyst Rating
2 Buy
3 Hold
0 Sell
Moderate Buy
Current: 18.140
Low
19.00
Averages
19.00
High
19.00
Current: 18.140
Low
19.00
Averages
19.00
High
19.00
About SLP
Simulations Plus, Inc. specializes in model-informed and artificial intelligence (AI)-accelerated drug development. The Company helps its clients by accelerating the discovery, development, and commercialization of pharmaceuticals and other products through science-based software and consulting solutions. The Company’s segments include Software and Services. The Company's Software segment supports pharmaceutical research, development, and commercialization through simulation, modeling, and AI-driven prediction. Its main products include GastroPlus, ADMET Predictor, MonolixSuite, and others for disease modeling and training, as well as Pro-ficiency for clinical operations. Its Services segment includes advanced consulting services across the entire drug development lifecycle. Its scientists and engineers specialize in drug discovery, pharmacokinetics, pharmacodynamics, drug modeling, clinical trial data analysis, regulatory strategy, and medical communications.
About the author

Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
- Investigation Background: Johnson Fistel, PLLP is investigating potential securities law violations by Simulations Plus, Inc., focusing on whether the company made false or misleading statements regarding its financial outlook, reporting practices, and internal controls, which could significantly impact investors.
- Revenue Guidance Cut: On June 11, 2025, Simulations Plus revised its full-year fiscal 2025 revenue guidance down to $76 million to $80 million from $90 million to $93 million, primarily due to market uncertainties affecting pharmaceutical and biotechnology clients, leading to budget cuts and project cancellations.
- Stock Price Volatility: Following the revenue guidance cut, Simulations Plus's stock plummeted over 24%, from $26.44 per share to $20.05 per share; subsequently, on July 14, 2025, after reporting a net loss of $67.3 million, the stock fell nearly 26% again.
- Audit Firm Dismissal: Simulations Plus disclosed on July 14, 2025, that it had dismissed Grant Thornton LLP as its independent auditor due to unresolved issues related to financial reporting and internal controls, raising further concerns among investors about the company's financial integrity.
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- Investigation Focus: Halper Sadeh LLC is investigating companies including Arcosa, Inc. (NYSE: ACA), Open Lending Corporation (NASDAQ: LPRO), Simulations Plus, Inc. (NASDAQ: SLP), and AstroNova, Inc. (NASDAQ: ALOT) for potential violations of federal securities laws and breaches of fiduciary duties, which may adversely affect shareholder rights.
- Transaction Details: Arcosa's sale price is set at $150.00 per share, Open Lending at $3.15 per share, Simulations Plus at $18.50 per share, and AstroNova at $29.00 per share, raising concerns that these prices may not reflect the true value of the companies, potentially harming shareholder interests.
- Shareholder Rights Protection: Halper Sadeh LLC encourages shareholders to contact them to discuss their rights and options at no cost, indicating the firm's commitment to providing legal support to ensure shareholder interests are protected.
- Legal Fee Arrangement: The firm operates on a contingency fee basis, meaning shareholders will not incur legal fees unless the case is successful, which reduces financial risk for shareholders and enhances their willingness to seek legal recourse.
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- Shareholder Rights Investigation: Halper Sadeh LLC is investigating potential securities law violations involving AstroNova, Inc. and Simulations Plus, Inc., with the former being sold for $29.00 per share to Arcline Investment Management and the latter for $18.50 per share to Altaris, LLC, which may impact shareholder rights and options.
- Merger Transaction Review: The merger between Olin Corporation and Huntsman Corporation will result in Olin shareholders owning approximately 54.5% of the combined entity, and Halper Sadeh LLC may seek increased compensation and additional disclosures to ensure shareholder rights are protected.
- Legal Fee Arrangement: Halper Sadeh LLC offers legal services on a contingency fee basis, meaning shareholders will not incur any out-of-pocket legal fees when addressing related matters, thereby reducing the financial burden on shareholders and encouraging them to assert their rights.
- Global Investor Support: The firm represents investors worldwide, focusing on combating securities fraud and corporate misconduct, having previously recovered millions of dollars for defrauded investors, demonstrating its expertise and influence in protecting investor rights.
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- Merger Investigation: Monteverde & Associates is investigating the merger between Olin Corporation and Huntsman Corporation, with Olin shareholders expected to own approximately 54.5% of the combined entity post-transaction, which will significantly impact shareholder equity distribution and corporate governance.
- Shareholder Returns: AstroNova, Inc. shareholders are anticipated to receive $29.00 per share in cash from the sale to Arcline Investment Management, reflecting market recognition of the company's value while providing substantial returns to shareholders.
- Cash Transactions: Simulations Plus, Inc. shareholders are expected to receive $18.50 per share in cash from the sale to Altaris, LLC, which will enhance direct cash inflow for shareholders and improve their investment returns.
- Voting Schedule: Citizens National Corporation shareholders will vote on August 6, 2026, with each expected to receive 2.10 common shares of Peoples and $8.00 in cash per share, which will affect the shareholder structure and future equity interests.
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- AI-Driven Drug Development: Simulations Plus announces a partnership with NVIDIA to build the agentic layer of its Composer platform using the BioNeMo Agent Toolkit, aimed at accelerating model-informed drug development and enhancing biopharma innovation capabilities.
- Scientific Reasoning and Evidence Integration: Composer agents will leverage NVIDIA Nemotron™ Parse to extract information from scientific literature, ensuring researchers can trace recommendations and conclusions back to original data, thereby enhancing research transparency and reliability.
- Accelerating Quantitative Systems Pharmacology: Through the nvQSP initiative, the companies are developing CUDA-optimized ordinary differential equation solvers to enhance the efficiency of computationally intensive simulations, enabling scientists to explore parameter spaces and validate hypotheses more rapidly in complex biological systems.
- Strategic Vision and Market Positioning: The CEO of Simulations Plus states that the introduction of agentic AI will transform how scientists interact with models and data, helping researchers move from questions to insights more efficiently while keeping validated science at the center of decision-making.
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- Investigation Focus: Halper Sadeh LLC is investigating companies such as Roku, Inc., Simulations Plus, Inc., Nuvalent, Inc., and Dana Incorporated for potential violations of federal securities laws and breaches of fiduciary duties, which may impact shareholder rights and interests.
- Roku Transaction Details: Roku, Inc. is in a deal with Fox Corporation at a price of $96.00 per share plus 0.9693 shares of Fox Class A common stock, which may limit the emergence of superior competing offers, thereby affecting shareholder options.
- Nuvalent Acquisition Situation: Nuvalent, Inc. is being acquired at $124.00 per share by GSK plc, a high acquisition price that may raise concerns regarding shareholder rights, especially given the potential limitations on other bids due to transaction terms.
- Dana Merger Impact: Dana Incorporated is merging with Eaton Corporation plc, with Dana shareholders expected to own approximately 49.9% of the combined company, a structure that may influence shareholder control and future financial performance.
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