Varonis Faces Securities Class Action Lawsuit
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 11 hours ago
0mins
Should l Buy VRNS?
Source: Globenewswire
- Lawsuit Background: Hagens Berman is notifying investors in Varonis Systems, Inc. (NASDAQ: VRNS) about the upcoming March 9, 2026, lead plaintiff deadline in a securities class action lawsuit against the company and its executives, alleging concealment of significant renewal softness in its Federal vertical and legacy on-premises business.
- Performance Decline: On October 28, 2025, Varonis disclosed that its transition to a SaaS model was hindered, resulting in a 63.9% year-over-year decline in term license revenue and a drastic cut in ARR guidance, which triggered a 48% single-day stock crash, erasing approximately $3.8 billion in market value.
- Investor Losses: The lawsuit claims that Varonis misrepresented its ability to convert existing customers to SaaS, despite previously assuring investors that they were “well on our way” to becoming a SaaS company, while in reality, they struggled to convince on-premises users to migrate at the promised pace.
- Next Steps: Hagens Berman urges investors who purchased VRNS shares between February 4, 2025, and October 28, 2025, and suffered substantial losses, to report their losses promptly to participate in the lawsuit and seek compensation.
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Analyst Views on VRNS
Wall Street analysts forecast VRNS stock price to rise
18 Analyst Rating
14 Buy
4 Hold
0 Sell
Strong Buy
Current: 23.100
Low
37.00
Averages
52.18
High
80.00
Current: 23.100
Low
37.00
Averages
52.18
High
80.00
About VRNS
Varonis Systems, Inc. is a data security company. The Company’s cloud-native data security platform discovers and classifies critical data, removes exposures, and detects advanced threats with artificial intelligence (AI)-powered automation. Varonis software enables enterprises of all sizes and industries to protect data stored in the cloud and on-premises, including sensitive files, emails and databases; confidential personal data belonging to customers, patients and employees; financial records; source code, strategic and product plans; and other intellectual property. Its SaaS product portfolio includes two product lines: its flagship Varonis Data Security Platform, which protects Microsoft 365, Windows file shares, Active Directory, Edge devices (VPN, DNS, proxy), UNIX/Linux and hybrid NAS storage, and DatAdvantage Cloud, which protects IaaS environments and SaaS applications, such as Salesforce, AWS, Azure, Google Cloud, Google Workspace, Databricks, ServiceNow, and others.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Varonis Systems Faces Class Action Lawsuit Reminder
- Class Action Reminder: The Schall Law Firm reminds investors of a class action lawsuit against Varonis Systems for violations of §§10(b) and 20(a) of the Securities Exchange Act, concerning securities purchased between February 4, 2025, and October 28, 2025, with a deadline to contact the firm by March 9, 2026.
- False Statements Allegation: The complaint alleges that Varonis made false and misleading statements regarding its ability to convert existing customers to its SaaS offering, while the company struggled to persuade customers to switch, thereby reducing opportunities for annual recurring revenue growth.
- Market Impact: As the market learned the truth about Varonis, investors suffered damages, indicating that the company's public statements were false and materially misleading throughout the class period, which could negatively impact its stock price.
- Legal Consultation Opportunity: The Schall Law Firm encourages shareholders who have suffered losses to take action before class certification to ensure their rights are protected and offers free legal consultations to help investors understand their rights and potential recoveries.
See More
Varonis Faces Securities Class Action Lawsuit
- Lawsuit Background: Hagens Berman is notifying investors in Varonis Systems, Inc. (NASDAQ: VRNS) about the upcoming March 9, 2026, lead plaintiff deadline in a securities class action lawsuit against the company and its executives, alleging concealment of significant renewal softness in its Federal vertical and legacy on-premises business.
- Performance Decline: On October 28, 2025, Varonis disclosed that its transition to a SaaS model was hindered, resulting in a 63.9% year-over-year decline in term license revenue and a drastic cut in ARR guidance, which triggered a 48% single-day stock crash, erasing approximately $3.8 billion in market value.
- Investor Losses: The lawsuit claims that Varonis misrepresented its ability to convert existing customers to SaaS, despite previously assuring investors that they were “well on our way” to becoming a SaaS company, while in reality, they struggled to convince on-premises users to migrate at the promised pace.
- Next Steps: Hagens Berman urges investors who purchased VRNS shares between February 4, 2025, and October 28, 2025, and suffered substantial losses, to report their losses promptly to participate in the lawsuit and seek compensation.
See More
Class Action Lawsuit Reminder for Varonis Systems Shareholders
- Lawsuit Background: Rosen Law Firm reminds investors of a class action lawsuit on behalf of purchasers of Varonis Systems, Inc. (NASDAQ: VRNS) common stock between February 4, 2025, and October 28, 2025, alleging misleading information regarding business operations.
- False Statements Allegation: The lawsuit claims that defendants misled investors about Varonis' expected annual recurring revenue (ARR) while concealing their inability to effectively convert existing customers to the software-as-a-service (SaaS) model, resulting in artificially inflated stock prices.
- Investor Losses: Due to the defendants' false and misleading statements, investors suffered damages when the true state of Varonis' customer retention and ARR growth potential was revealed, leading to significant financial losses.
- Next Steps: Shareholders wishing to serve as lead plaintiffs must file motions with the court by March 9, 2026, and representation is on a contingency fee basis, meaning no upfront costs for investors.
See More
Notice of Class Action Lawsuit for Varonis Systems Stockholders
- Class Action Notice: Rosen Law Firm reminds investors who purchased Varonis Systems (NASDAQ: VRNS) common stock between February 4, 2025, and October 28, 2025, to apply as lead plaintiffs by March 9, 2026, or risk losing compensation rights.
- Lawsuit Background: The lawsuit alleges that Varonis failed to maintain annual recurring revenue (ARR) projections and could not effectively persuade existing customers to transition to its software-as-a-service (SaaS) offering, exposing investors to significant loss risks.
- Law Firm Credentials: Rosen Law Firm specializes in securities class actions and recovered over $438 million for investors in 2019, highlighting its successful track record, thus investors should carefully select experienced legal counsel.
- Investor Action Recommendations: Investors can visit Rosen Law Firm's website or call the toll-free number for more information, and should choose appropriate legal representation to safeguard their rights in the class action, with unrepresented class members having the option to remain inactive.
See More
Class Action Lawsuit Filed Against Varonis for Investor Losses
- Class Action Initiation: Bragar Eagel & Squire has filed a class action lawsuit against Varonis in the Southern District of New York on behalf of investors who purchased shares between February 4, 2025, and October 28, 2025, seeking compensation for losses incurred due to the company's misleading statements.
- Poor Financial Performance: Varonis reported third-quarter 2025 results that missed consensus estimates, with a staggering 63.9% year-over-year decline in term license subscription revenues, indicating significant challenges in maintaining its Annual Recurring Revenue (ARR) growth trajectory.
- Stock Price Plunge: Following the earnings report, Varonis's stock price plummeted by $30.66, or 48.7%, closing at $32.34 per share, which directly resulted in substantial losses for investors and reflects a pessimistic outlook on the company's future prospects.
- Legal Rights Reminder: Investors must apply by March 9, 2026, to be appointed as lead plaintiffs in the lawsuit to protect their legal rights, with Bragar Eagel & Squire offering no-cost consultations to encourage affected investors to reach out for more information.
See More
Faruqi & Faruqi Investigates Securities Fraud Claims Against Varonis
- Legal Investigation Initiated: Faruq & Faruqi LLP is investigating potential claims against Varonis Systems, Inc., specifically encouraging investors who purchased securities between February 4, 2025, and October 28, 2025, to seek lead plaintiff status by the March 9, 2026 deadline, thereby protecting their legal rights.
- Financial Performance Miss: Varonis reported significant misses in its third-quarter financial results on October 28, 2025, revealing lower-than-expected annual recurring revenue (ARR) and reducing its full-year guidance, reflecting poor performance in customer renewals and conversions, which undermined investor confidence.
- Stock Price Plunge: Following the earnings announcement, Varonis's stock price plummeted from $63.00 per share on October 28, 2025, to $32.34 on October 29, marking a dramatic decline of approximately 48.67% in just one day, which not only affected investor asset values but also raised widespread concerns about the company's future growth potential.
- Legal Liability Risks: The lawsuit alleges that Varonis and its executives violated federal securities laws by making false and misleading statements and failing to disclose their true ability to convert existing customers to the SaaS solution, leading investors to purchase securities at artificially inflated prices, potentially exposing the company to substantial liability.
See More
Varonis Systems Faces Class Action Lawsuit Reminder
- Class Action Reminder: The Schall Law Firm reminds investors of a class action lawsuit against Varonis Systems for violations of §§10(b) and 20(a) of the Securities Exchange Act, concerning securities purchased between February 4, 2025, and October 28, 2025, with a deadline to contact the firm by March 9, 2026.
- False Statements Allegation: The complaint alleges that Varonis made false and misleading statements regarding its ability to convert existing customers to its SaaS offering, while the company struggled to persuade customers to switch, thereby reducing opportunities for annual recurring revenue growth.
- Market Impact: As the market learned the truth about Varonis, investors suffered damages, indicating that the company's public statements were false and materially misleading throughout the class period, which could negatively impact its stock price.
- Legal Consultation Opportunity: The Schall Law Firm encourages shareholders who have suffered losses to take action before class certification to ensure their rights are protected and offers free legal consultations to help investors understand their rights and potential recoveries.
See More
Varonis Faces Securities Class Action Lawsuit
- Lawsuit Background: Hagens Berman is notifying investors in Varonis Systems, Inc. (NASDAQ: VRNS) about the upcoming March 9, 2026, lead plaintiff deadline in a securities class action lawsuit against the company and its executives, alleging concealment of significant renewal softness in its Federal vertical and legacy on-premises business.
- Performance Decline: On October 28, 2025, Varonis disclosed that its transition to a SaaS model was hindered, resulting in a 63.9% year-over-year decline in term license revenue and a drastic cut in ARR guidance, which triggered a 48% single-day stock crash, erasing approximately $3.8 billion in market value.
- Investor Losses: The lawsuit claims that Varonis misrepresented its ability to convert existing customers to SaaS, despite previously assuring investors that they were “well on our way” to becoming a SaaS company, while in reality, they struggled to convince on-premises users to migrate at the promised pace.
- Next Steps: Hagens Berman urges investors who purchased VRNS shares between February 4, 2025, and October 28, 2025, and suffered substantial losses, to report their losses promptly to participate in the lawsuit and seek compensation.
See More
Class Action Lawsuit Reminder for Varonis Systems Shareholders
- Lawsuit Background: Rosen Law Firm reminds investors of a class action lawsuit on behalf of purchasers of Varonis Systems, Inc. (NASDAQ: VRNS) common stock between February 4, 2025, and October 28, 2025, alleging misleading information regarding business operations.
- False Statements Allegation: The lawsuit claims that defendants misled investors about Varonis' expected annual recurring revenue (ARR) while concealing their inability to effectively convert existing customers to the software-as-a-service (SaaS) model, resulting in artificially inflated stock prices.
- Investor Losses: Due to the defendants' false and misleading statements, investors suffered damages when the true state of Varonis' customer retention and ARR growth potential was revealed, leading to significant financial losses.
- Next Steps: Shareholders wishing to serve as lead plaintiffs must file motions with the court by March 9, 2026, and representation is on a contingency fee basis, meaning no upfront costs for investors.
See More
Notice of Class Action Lawsuit for Varonis Systems Stockholders
- Class Action Notice: Rosen Law Firm reminds investors who purchased Varonis Systems (NASDAQ: VRNS) common stock between February 4, 2025, and October 28, 2025, to apply as lead plaintiffs by March 9, 2026, or risk losing compensation rights.
- Lawsuit Background: The lawsuit alleges that Varonis failed to maintain annual recurring revenue (ARR) projections and could not effectively persuade existing customers to transition to its software-as-a-service (SaaS) offering, exposing investors to significant loss risks.
- Law Firm Credentials: Rosen Law Firm specializes in securities class actions and recovered over $438 million for investors in 2019, highlighting its successful track record, thus investors should carefully select experienced legal counsel.
- Investor Action Recommendations: Investors can visit Rosen Law Firm's website or call the toll-free number for more information, and should choose appropriate legal representation to safeguard their rights in the class action, with unrepresented class members having the option to remain inactive.
See More
Class Action Lawsuit Filed Against Varonis for Investor Losses
- Class Action Initiation: Bragar Eagel & Squire has filed a class action lawsuit against Varonis in the Southern District of New York on behalf of investors who purchased shares between February 4, 2025, and October 28, 2025, seeking compensation for losses incurred due to the company's misleading statements.
- Poor Financial Performance: Varonis reported third-quarter 2025 results that missed consensus estimates, with a staggering 63.9% year-over-year decline in term license subscription revenues, indicating significant challenges in maintaining its Annual Recurring Revenue (ARR) growth trajectory.
- Stock Price Plunge: Following the earnings report, Varonis's stock price plummeted by $30.66, or 48.7%, closing at $32.34 per share, which directly resulted in substantial losses for investors and reflects a pessimistic outlook on the company's future prospects.
- Legal Rights Reminder: Investors must apply by March 9, 2026, to be appointed as lead plaintiffs in the lawsuit to protect their legal rights, with Bragar Eagel & Squire offering no-cost consultations to encourage affected investors to reach out for more information.
See More
Faruqi & Faruqi Investigates Securities Fraud Claims Against Varonis
- Legal Investigation Initiated: Faruq & Faruqi LLP is investigating potential claims against Varonis Systems, Inc., specifically encouraging investors who purchased securities between February 4, 2025, and October 28, 2025, to seek lead plaintiff status by the March 9, 2026 deadline, thereby protecting their legal rights.
- Financial Performance Miss: Varonis reported significant misses in its third-quarter financial results on October 28, 2025, revealing lower-than-expected annual recurring revenue (ARR) and reducing its full-year guidance, reflecting poor performance in customer renewals and conversions, which undermined investor confidence.
- Stock Price Plunge: Following the earnings announcement, Varonis's stock price plummeted from $63.00 per share on October 28, 2025, to $32.34 on October 29, marking a dramatic decline of approximately 48.67% in just one day, which not only affected investor asset values but also raised widespread concerns about the company's future growth potential.
- Legal Liability Risks: The lawsuit alleges that Varonis and its executives violated federal securities laws by making false and misleading statements and failing to disclose their true ability to convert existing customers to the SaaS solution, leading investors to purchase securities at artificially inflated prices, potentially exposing the company to substantial liability.
See More
