Simulations Plus Faces Shareholder Probe Following Accounting Disclosures

The investigation follows a turbulent period for the San Diego-based software firm. In June 2025, Simulations Plus sharply reduced its annual revenue guidance from an initial $93 million projection to a range of $76 million to $80 million, citing project cancellations and budget cuts within the biotechnology sector. The disclosure triggered a 24% drop in share price, tumbling from $26.44 to $20.05.

Matters intensified in July 2025 when the company reported a $67.3 million net loss and abruptly dismissed its auditor, Grant Thornton LLP. Simulations Plus cited unresolved issues regarding segment reporting and internal controls in its regulatory filings. Grant Thornton contested these claims, stating in an SEC letter that internal control deficiencies were never resolved to the firm's satisfaction prior to its termination. Following these revelations, the stock fell an additional 26%, sliding from $17.47 to $12.97 per share. Johnson Fistel is now evaluating whether these events constitute a failure to disclose material information to the public.