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Investigation into Simulations Plus, Inc. for Potential Securities Laws Violations

Strategic Insights

— 1 min read

Simulations Plus, a software company providing tools for modeling and simulation in the pharmaceutical, biotechnology, and chemical industries, has been under investigation for potential violations of federal securities laws. The investigation centers around the company's acquisition of Pro-ficiency Holdings, Inc. in June 2024 and its subsequent integration and financial reporting. Investors who bought Simulations Plus stock may have legal options and are encouraged to seek information and representation.

Key Takeaways:

  • The investigation involves potential securities law violations by Simulations Plus related to its acquisition of Pro-ficiency Holdings, Inc. and its subsequent financial reporting.
  • Simulations Plus claimed that the integration of Pro-ficiency would double its total addressable market and significantly contribute to sales, but it appears the company struggled to successfully integrate the acquisition.
  • The company's internal controls over financial reporting were certified as effective, but the investigation suggests that they were actually lacking.
  • The stock price of Simulations Plus declined significantly after the truth was revealed, with a $6.39 per share drop on June 12, 2025, and a further $4.50 per share decline on June 15, 2025.
  • The investigation has led to the formation of a class-action lawsuit, with the law firm Bleichmar Fonti & Auld LLP leading the charge.
  • Bleichmar Fonti & Auld LLP is a leading international law firm representing plaintiffs in securities class actions and shareholder litigation, with notable successes in recovering over $900 million in value from Tesla, Inc.'s Board of Directors and $420 million from Teva Pharmaceutical Ind. Ltd.

Statistics:

  • $6.39 per share: The decline in Simulations Plus stock price on June 12, 2025, after the truth about the company's financials was revealed.
  • 24%: The percentage decrease in stock price on June 12, 2025, from $26.44 per share to $20.05 per share.
  • $4.50 per share: The further decline in stock price on June 15, 2025, after the company dismissed Grant Thornton and revealed auditor disagreements.
  • 26%: The percentage decrease in stock price on June 15, 2025, from $17.47 per share to $12.97 per share.

Sources:

  • Newsfile Corp, (2025, October 13), Investigations into Simulations Plus, Inc. Announced.
  • Bleichmar Fonti & Auld LLP, (2025, October 13), Investigations into Simulations Plus, Inc.
  • Chambers USA
  • The Legal 500
  • ISS SCAS
  • National Law Journal
  • Lawdragon
  • Law360
  • Thomson Reuters

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