Johnson Fistel Probes Simulations Plus for Securities Violations After $77.2M Charge, Auditor Dismissal
Johnson Fistel, PLLP is investigating potential federal securities law violations by Simulations Plus relating to alleged misrepresentations, omissions and internal control failures. The probe follows a $77.2 million charge on prior acquisitions and the dismissal of auditor Grant Thornton LLP, which drove share declines of 24% and 26% in 2025.
1. Investigation Launched by Johnson Fistel
On January 20, 2026, Johnson Fistel, PLLP announced an investigation into Simulations Plus, Inc. regarding possible violations of federal securities laws. The firm is examining whether Simulations Plus and its executives made material misrepresentations or omissions that harmed investors. Shareholders who purchased Simulations Plus securities during the relevant period may be eligible to recover losses through a potential class action or individual claims. Interested parties are encouraged to contact Johnson Fistel for further information on eligibility and next steps.
2. Timeline of Corporate Disclosures and Market Reactions
In June 2024, Simulations Plus completed its acquisition of Pro-ficiency Holdings, positioning the deal as a catalyst to double its total addressable market. However, on June 11, 2025, the company reported weaker-than-expected third‐quarter results, attributing underperformance to ‘market uncertainties’ and triggering a stock decline in excess of 20%. A month later, on July 14, 2025, Simulations Plus disclosed a $77.2 million charge tied to prior acquisitions and announced the dismissal of its auditor, Grant Thornton LLP. The following day, the firm revealed unresolved internal controls and segment‐reporting issues, prompting another share drop of roughly 25%.
3. Investor Implications and Potential Recoveries
The alleged misstatements include assurances of effective internal controls over financial reporting and optimistic projections tied to the Pro-ficiency acquisition. Investors who incurred significant losses when the company’s share price reacted to these disclosures may pursue recovery of damages. Johnson Fistel highlights that successful recoveries in similar securities‐fraud actions have reached multi‐million dollar outcomes, though past results do not guarantee future success. Parties interested in the investigation can access details and submit claim forms via the law firm’s website.
4. Company Overview and Growth Prospects
Simulations Plus is a San Diego–based software provider serving the pharmaceutical, biotechnology and chemical sectors. Its platforms support drug‐development modeling, predictive simulation and data analytics. Prior to the 2025 disclosures, management projected double‐digit revenue growth driven by expanded software adoption and the integration of Pro-ficiency’s product lines. The firm’s R&D pipeline includes machine‐learning modules for toxicology prediction, and leadership has emphasized recurring subscription contracts as a means to bolster long‐term margins.