Varonis Systems Faces Securities Fraud Class Action Lawsuit
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 3 days ago
0mins
Should l Buy VRNS?
Source: Globenewswire
- Lawsuit Background: Varonis Systems, Inc. (NASDAQ: VRNS) is facing a class action lawsuit alleging securities fraud, with plaintiffs claiming that the company and its executives made false representations regarding its ability to convert existing customers between February 4 and October 28, 2025, resulting in investor losses.
- Investor Rights: Investors who purchased Varonis stock during the specified period must file to become lead plaintiffs by March 9, 2026, to represent other shareholders in the litigation, while those who take no action will remain absent class members, potentially limiting their recovery options.
- Legal Fee Arrangement: The lawsuit operates on a contingency fee basis, meaning shareholders incur no fees or expenses, which reduces the financial burden on investors and encourages more affected shareholders to participate in the legal proceedings.
- Law Firm Background: Bernstein Liebhard LLP has recovered over $3.5 billion for clients since 1993 and has extensive experience in class action litigation, having been recognized multiple times as one of the top plaintiff law firms in the nation, underscoring its capability in protecting investor rights.
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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: 25.150
Low
37.00
Averages
52.18
High
80.00
Current: 25.150
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.
Faruqi & Faruqi Investigates Varonis Securities Fraud Claims
- Investor Loss Alert: Faruq & Faruq LLP is urging investors who suffered losses exceeding $100,000 in Varonis between February 4, 2025, and October 28, 2025, to contact partner Josh Wilson, indicating potential securities fraud claims that could undermine investor confidence.
- Significant Financial Decline: Varonis reported a substantial miss in annual recurring revenue (ARR) in its Q3 2025 financial results and lowered its full-year guidance, revealing weaknesses in customer renewals and conversions, which may lead to further investor sell-offs.
- Stock Price Volatility: On October 28, 2025, Varonis's stock plummeted from $63.00 per share to $32.34, a dramatic decline of approximately 48.67% in a single day, reflecting market pessimism regarding the company's future prospects and potentially triggering more legal actions.
- Legal Action Deadline Reminder: Faruq & Faruq LLP reminds investors that March 9, 2026, is the deadline to apply to become the lead plaintiff in the federal securities class action, emphasizing the importance of timely action to protect their legal rights.
See More
Varonis Systems Faces Class Action Lawsuit
- Lawsuit Announcement: Robbins Geller Rudman & Dowd LLP has announced that purchasers of Varonis Systems, Inc. (NASDAQ:VRNS) common stock between February 4, 2025, and October 28, 2025, have until March 9, 2026, to seek lead plaintiff status in the class action lawsuit titled Molchanov v. Varonis Systems, Inc.
- Allegations Overview: The lawsuit alleges that Varonis and its executives violated the Securities Exchange Act of 1934 by creating a false impression of reliable revenue projections while downplaying risks from seasonality and macroeconomic factors, resulting in significant investor losses.
- Performance Decline: On October 28, 2025, Varonis reported third-quarter results that fell significantly short of expectations and lowered its full-year guidance, with CEO Yakov Faitelson attributing the shortfall to decreased renewals in both Federal and non-Federal sectors, leading to a nearly 49% drop in stock price.
- Lead Plaintiff Process: Under the Private Securities Litigation Reform Act of 1995, any investor who purchased Varonis stock during the class period can seek lead plaintiff status, representing the interests of other investors and selecting a law firm to litigate the case.
See More
Reminder for Varonis Systems Stock Class Action
- 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, to potentially receive compensation without any out-of-pocket costs.
- Lawsuit Background: The lawsuit alleges that Varonis failed to maintain annual recurring revenue (ARR) projections and could not effectively convince existing customers to transition to the software-as-a-service (SaaS) model, resulting in significantly reduced ARR growth potential and investor losses.
- Law Firm Credentials: Rosen Law Firm specializes in securities class actions and has achieved the largest securities class action settlement against a Chinese company, recovering over $438 million for investors in 2019 alone, showcasing its strong track record and expertise in this field.
- Participation Instructions: Investors can visit the Rosen Law Firm website or call the toll-free number for more information, emphasizing the importance of selecting qualified legal counsel, especially since the class has not yet been certified, leaving investors to choose their representation wisely.
See More
Varonis Systems Class Action Notice for Investors
- 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, to potentially receive compensation without any out-of-pocket costs.
- Lawsuit Background: The lawsuit alleges that Varonis failed to maintain annual recurring revenue (ARR) projections and could not effectively persuade existing users to transition to the software-as-a-service (SaaS) model, resulting in significantly reduced ARR growth potential and investor losses.
- Law Firm's Credentials: Rosen Law Firm specializes in securities class actions, having recovered over $438 million for investors in 2019 alone, and was ranked No. 1 by ISS Securities Class Action Services in 2017, demonstrating its success and resources in this field.
- Investor Advisory: Investors are advised to carefully select law firms with proven success in representing clients in class actions to ensure effective representation and avoid firms that merely act as intermediaries, thereby protecting their rights.
See More
Class Action Filed Against Varonis Systems for Securities Violations
- Class Action Initiated: Bronstein, Gewirtz & Grossman has filed a class action lawsuit against Varonis Systems, seeking damages for investors who purchased securities between February 4, 2025, and October 28, 2025, highlighting concerns over potential investor losses.
- Allegations of False Statements: The complaint alleges that Varonis made materially false and misleading statements during the class period, failing to disclose its true capabilities in converting existing customers to its SaaS offerings, which led investors to purchase securities at artificially inflated prices, impacting the company's market credibility.
- Potential Financial Losses: The inability to effectively retain customers has resulted in significantly reduced annual recurring revenue (ARR) growth potential for Varonis, indicating a vulnerability in the company's competitive position and exposing investors to greater financial risks.
- Call to Action for Investors: Investors are encouraged to apply to be lead plaintiffs by March 9, 2026, to share in any potential recovery from the lawsuit, reflecting a strong demand for corporate governance and transparency.
See More
Varonis Systems Faces Securities Class Action Lawsuit
- Lawsuit Notification: Hagens Berman law firm is notifying investors in Varonis Systems, Inc. (NASDAQ: VRNS) regarding the upcoming March 9, 2026, lead plaintiff deadline in a pending securities class action lawsuit against the company and its executives.
- Performance Decline: On October 28, 2025, Varonis disclosed difficulties in its transition to a SaaS model, resulting in a 63.9% year-over-year decline in term license revenue and a slashed ARR outlook, which directly impacted the company's stock price.
- Stock Price Crash: Following this disclosure, VRNS shares plummeted from $63.00 to $32.34, representing a 48% single-day drop and a market value loss of approximately $3.8 billion, severely undermining investor confidence.
- Legal Implications: The lawsuit alleges that Varonis failed to disclose significant renewal softness in its Federal vertical and legacy business, potentially violating federal securities laws, leaving investors facing substantial losses, prompting the law firm to urge affected investors to file claims.
See More
Faruqi & Faruqi Investigates Varonis Securities Fraud Claims
- Investor Loss Alert: Faruq & Faruq LLP is urging investors who suffered losses exceeding $100,000 in Varonis between February 4, 2025, and October 28, 2025, to contact partner Josh Wilson, indicating potential securities fraud claims that could undermine investor confidence.
- Significant Financial Decline: Varonis reported a substantial miss in annual recurring revenue (ARR) in its Q3 2025 financial results and lowered its full-year guidance, revealing weaknesses in customer renewals and conversions, which may lead to further investor sell-offs.
- Stock Price Volatility: On October 28, 2025, Varonis's stock plummeted from $63.00 per share to $32.34, a dramatic decline of approximately 48.67% in a single day, reflecting market pessimism regarding the company's future prospects and potentially triggering more legal actions.
- Legal Action Deadline Reminder: Faruq & Faruq LLP reminds investors that March 9, 2026, is the deadline to apply to become the lead plaintiff in the federal securities class action, emphasizing the importance of timely action to protect their legal rights.
See More
Varonis Systems Faces Class Action Lawsuit
- Lawsuit Announcement: Robbins Geller Rudman & Dowd LLP has announced that purchasers of Varonis Systems, Inc. (NASDAQ:VRNS) common stock between February 4, 2025, and October 28, 2025, have until March 9, 2026, to seek lead plaintiff status in the class action lawsuit titled Molchanov v. Varonis Systems, Inc.
- Allegations Overview: The lawsuit alleges that Varonis and its executives violated the Securities Exchange Act of 1934 by creating a false impression of reliable revenue projections while downplaying risks from seasonality and macroeconomic factors, resulting in significant investor losses.
- Performance Decline: On October 28, 2025, Varonis reported third-quarter results that fell significantly short of expectations and lowered its full-year guidance, with CEO Yakov Faitelson attributing the shortfall to decreased renewals in both Federal and non-Federal sectors, leading to a nearly 49% drop in stock price.
- Lead Plaintiff Process: Under the Private Securities Litigation Reform Act of 1995, any investor who purchased Varonis stock during the class period can seek lead plaintiff status, representing the interests of other investors and selecting a law firm to litigate the case.
See More
Reminder for Varonis Systems Stock Class Action
- 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, to potentially receive compensation without any out-of-pocket costs.
- Lawsuit Background: The lawsuit alleges that Varonis failed to maintain annual recurring revenue (ARR) projections and could not effectively convince existing customers to transition to the software-as-a-service (SaaS) model, resulting in significantly reduced ARR growth potential and investor losses.
- Law Firm Credentials: Rosen Law Firm specializes in securities class actions and has achieved the largest securities class action settlement against a Chinese company, recovering over $438 million for investors in 2019 alone, showcasing its strong track record and expertise in this field.
- Participation Instructions: Investors can visit the Rosen Law Firm website or call the toll-free number for more information, emphasizing the importance of selecting qualified legal counsel, especially since the class has not yet been certified, leaving investors to choose their representation wisely.
See More
Varonis Systems Class Action Notice for Investors
- 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, to potentially receive compensation without any out-of-pocket costs.
- Lawsuit Background: The lawsuit alleges that Varonis failed to maintain annual recurring revenue (ARR) projections and could not effectively persuade existing users to transition to the software-as-a-service (SaaS) model, resulting in significantly reduced ARR growth potential and investor losses.
- Law Firm's Credentials: Rosen Law Firm specializes in securities class actions, having recovered over $438 million for investors in 2019 alone, and was ranked No. 1 by ISS Securities Class Action Services in 2017, demonstrating its success and resources in this field.
- Investor Advisory: Investors are advised to carefully select law firms with proven success in representing clients in class actions to ensure effective representation and avoid firms that merely act as intermediaries, thereby protecting their rights.
See More
Class Action Filed Against Varonis Systems for Securities Violations
- Class Action Initiated: Bronstein, Gewirtz & Grossman has filed a class action lawsuit against Varonis Systems, seeking damages for investors who purchased securities between February 4, 2025, and October 28, 2025, highlighting concerns over potential investor losses.
- Allegations of False Statements: The complaint alleges that Varonis made materially false and misleading statements during the class period, failing to disclose its true capabilities in converting existing customers to its SaaS offerings, which led investors to purchase securities at artificially inflated prices, impacting the company's market credibility.
- Potential Financial Losses: The inability to effectively retain customers has resulted in significantly reduced annual recurring revenue (ARR) growth potential for Varonis, indicating a vulnerability in the company's competitive position and exposing investors to greater financial risks.
- Call to Action for Investors: Investors are encouraged to apply to be lead plaintiffs by March 9, 2026, to share in any potential recovery from the lawsuit, reflecting a strong demand for corporate governance and transparency.
See More
Varonis Systems Faces Securities Class Action Lawsuit
- Lawsuit Notification: Hagens Berman law firm is notifying investors in Varonis Systems, Inc. (NASDAQ: VRNS) regarding the upcoming March 9, 2026, lead plaintiff deadline in a pending securities class action lawsuit against the company and its executives.
- Performance Decline: On October 28, 2025, Varonis disclosed difficulties in its transition to a SaaS model, resulting in a 63.9% year-over-year decline in term license revenue and a slashed ARR outlook, which directly impacted the company's stock price.
- Stock Price Crash: Following this disclosure, VRNS shares plummeted from $63.00 to $32.34, representing a 48% single-day drop and a market value loss of approximately $3.8 billion, severely undermining investor confidence.
- Legal Implications: The lawsuit alleges that Varonis failed to disclose significant renewal softness in its Federal vertical and legacy business, potentially violating federal securities laws, leaving investors facing substantial losses, prompting the law firm to urge affected investors to file claims.
See More
