Simulations Plus Securities Investigations
Analysis based on 51 articles · First reported Jun 01, 2026 · Last updated Jul 13, 2026
The market is negatively impacted by the significant decline in Simulations Plus' stock price, which fell over 24% after revised revenue guidance and nearly 26% after the net loss, impairment charge, and auditor dismissal. This event highlights risks associated with financial reporting and internal controls in the pharmaceutical and biotechnology software sectors, potentially leading to increased scrutiny of similar companies.
Simulations Plus, a software company serving the pharmaceutical, biotechnology, and chemical industries, is under investigation by shareholder rights law firms Johnson Fistel and Robbins LLP for potential securities law violations. The investigations stem from several disclosures made by Simulations Plus in 2025, including a significant reduction in its full-year fiscal 2025 revenue guidance from $90-93 million to $76-80 million, attributed to market uncertainties affecting its customers. Following this, the company reported a net loss of $67.3 million, which included a $77.2 million non-cash impairment charge. Subsequently, Simulations Plus dismissed its independent auditor, Grant Thornton Bharat, citing unresolved matters related to segment reporting, reporting-unit determinations, and internal control over financial reporting. Grant Thornton Bharat later filed a letter with the United States — United States Securities and Exchange Commission, disputing aspects of Simulations Plus' disclosure regarding their termination. These events led to substantial drops in Simulations Plus' stock price, with declines of over 24% and nearly 26% following the respective announcements.
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