Simulations Plus Faces Securities Investigation Over Financial Disclosures

Law firm Johnson Fistel, PLLP has initiated an investigation into potential securities law violations by Simulations Plus, Inc. (NASDAQ: SLP). The inquiry focuses on whether the company and its executives made misleading statements or failed to disclose crucial information regarding its financial health, reporting practices, internal controls, and accounting procedures.

The investigation stems from a series of significant events. On April 3, 2025, Simulations Plus reaffirmed its fiscal year 2025 revenue guidance of $90 million to $93 million. However, on June 11, 2025, the company revised this guidance downwards to between $76 million and $80 million, citing market uncertainties impacting its pharmaceutical and biotechnology clients, including budget cuts and project delays. This announcement led to a sharp decline of over 24% in SLP's stock price, falling from $26.44 to $20.05.

Further disclosures on July 14, 2025, revealed a third-quarter net loss of $67.3 million ($3.35 per diluted share), largely due to a $77.2 million non-cash impairment charge. The following day, Simulations Plus announced the dismissal of its independent auditor, Grant Thornton LLP. The company cited unresolved issues related to segment reporting, reporting-unit determinations, and internal financial controls. Grant Thornton later communicated to the SEC that these matters were not resolved to its satisfaction prior to its termination.

These subsequent disclosures caused another significant drop in Simulations Plus' stock, with shares falling nearly 26% from $17.47 to $12.97. Investors who have experienced losses are encouraged to contact Johnson Fistel, PLLP to learn more about the investigation.