Simulations Plus, Inc. (SLP) Investigation

The investigation is focused on the propriety of Simulations Plus’ statements concerning its asset values and the basis of its dismissal of independent auditor Grant Thornton.

The inquiry stems from a series of events earlier this month. On July 14, Simulations Plus announced a $77.2 million charge, stating it adjusted the book value of its assets to align with current market values. The following day, in a separate disclosure, the company revealed it had terminated its engagement with Grant Thornton on July 9. Simulations Plus had initially hired Grant Thornton on April 15, 2025.

Simulations Plus explained the auditor change by stating that during Grant Thornton's brief tenure, the company reviewed matters concerning segment reporting and reporting unit determinations that could not be finalized for its May 31, 2025, quarterly report. The company also evaluated internal controls over financial reporting related to Sarbanes-Oxley Act Section 404(a) compliance, concluding these could not be finalized in time for the same report. Simulations Plus added that there were no "reportable events" as defined by SEC regulations.

Grant Thornton, however, disputed Simulations Plus's account in a letter to the Securities and Exchange Commission. The auditing firm stated its disagreement with the company's disclosure. Grant Thornton further indicated that during its review of Simulations Plus's consolidated financial statements for the quarter ended May 31, 2025, it had identified and communicated specific concerns to management and the Audit Committee related to segment reporting, reporting unit determinations, and internal controls over financial reporting.

FREQUENTLY ASKED QUESTIONS ABOUT THE CASE

What is the SLP investigation about?

We are investigating whether Simulations Plus may have misled investors about the value of its assets and why it abruptly fired Grant Thornton and rehired its old auditor.

WHAT SHOULD I DO?

I worked at SLP. What should I do?

If you were an employee of SLP, you may have valuable information that could be relevant to the investigation. Hagens Berman is one of the nation’s top whistleblower law firms, and has successfully represented many individuals who come forward with information regarding corporate malfeasance. Under the new SEC Whistleblower program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, contact Reed Kathrein at 844-916-0895 or [email protected].

There are multiple law firms participating, do I need to contact all of them?

No, you do not need to contact all participating law firms. Generally, class-action investigations and lawsuits are consolidated into a single case to streamline the legal process, and attorneys from only a few law firms are selected to serve in a leadership role on the consolidated case. Hagens Berman has a proven track record of being appointed to leadership roles in complex, multidistrict litigation regarding investor fraud and other consumer rights issues, and your claim will be handled by attorneys who have helped secure approximately $325 billion in class-action settlements on behalf of individuals who have suffered due to corporate malfeasance and the wrongdoing of other powerful institutions.

AM I ELIGIBLE?

What is the threshold amount to be eligible? What are “substantial” losses?

The threshold amount and the definition of "substantial" losses may vary depending on a number of factors specific to the case, including the size of the company, market cap, shares outstanding and who holds them and the damages alleged by the fraud. In general, to be eligible to participate in a class-action lawsuit, you must be able to demonstrate that you suffered financial losses as a result of the alleged wrongdoing and that your losses meet the criteria set by the court or law firm. Fill out the form and submit your losses.

CAN I PARTICIPATE?

Am I affected? What do I need to do to participate?

If you were an investor in SLP, you may be affected and eligible to participate in the case. To determine your eligibility and potential involvement, fill out the form and submit your losses.

Can any SLP investor participate?

In most class-action investigations and cases, any investor who meets the eligibility criteria, including purchasing the shares during the relevant period, can participate, regardless of the size of their investment. Fill out the form to find out your rights.

I bought on a non-U.S. Exchange. Can I participate?

No. This investigation only covers shares bought on a U.S. exchange, i.e. NASDAQ or NYSE. Fill out the form to find out your rights.

Am I included if I still hold my shares, or do I need to sell to participate?

Participation is based on purchasing shares during the relevant period, rather than your current holdings. Accordingly, you do not need to sell to participate. Fill out the form to find out your rights.