Simulations Plus (SLP) Faces Investor Scrutiny After Asset Impairments and Grant Thornton Contests Company Statements About Dismissal -- Hagens Berman
SAN FRANCISCO - Investors in Simulations Plus, Inc. (NASDAQ: SLP) saw the price of their shares decline about 25% on July 15, 2025 after the company reported its Q3 2025 $67.3 million net loss that included a $77.2 million impairment charge and the company’s firing of its independent auditor Grant Thornton, whom it hired on April 15, 2025.
Simulations Plus’s revelation has prompted national shareholders rights firm Hagens Berman to open an investigation into whether the company may have misled investors about its asset valuations and the reasons why it abruptly dismissed Grant Thornton and urges Simulations Plus investors who suffered substantial losses to submit your losses now. The firm also encourages persons with knowledge who may be able to assist in the investigation to contact its attorneys.
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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.
“We’re 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,” said Reed Kathrein, the Hagens Berman partner leading the investigation.
If you invested in Simulations Plus and have substantial losses, or have knowledge that may assist the firm’s investigation, submit your losses now »
If you’d like more information and answers to frequently asked questions about the Simulations Plus investigation, read more »
Whistleblowers: Persons with non-public information regarding Simulations Plus should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new 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, call Reed Kathrein at 844-916-0895 or email [email protected].
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About Hagens Berman
Hagens Berman is a global plaintiffs’ rights complex litigation firm focusing on corporate accountability. The firm is home to a robust practice and represents investors as well as whistleblowers, workers, consumers and others in cases achieving real results for those harmed by corporate negligence and other wrongdoings. Hagens Berman’s team has secured more than $2.9 billion in this area of law. More about the firm and its successes can be found at hbsslaw.com. Follow the firm for updates and news at @ClassActionLaw.
