Varonis Systems Class Action Reminder for Investors
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
0mins
Should l Buy VRNS?
Source: Globenewswire
- Class Action Notice: Rosen Law Firm reminds investors who purchased Varonis Systems (NASDAQ: VRNS) common stock between February 4, 2025, and October 28, 2025, that they must apply to be lead plaintiff by March 9, 2026, or risk losing their right to compensation.
- Fee Arrangement: Investors joining the class action will incur no out-of-pocket expenses, as the law firm operates on a contingency fee basis, allowing investors to pursue potential compensation without financial burden.
- Lawsuit Background: The lawsuit alleges that Varonis failed to maintain annual recurring revenue (ARR) projections while transitioning to a software-as-a-service (SaaS) model, resulting in significant losses for investors once the true situation was revealed, indicating serious shortcomings in customer retention and conversion strategies.
- Law Firm's Strength: Rosen Law Firm is renowned for its successful track record in securities class actions, having recovered over $438 million for investors in 2019 alone, showcasing its expertise and resource advantages in handling such cases.
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Analyst Views on VRNS
Wall Street analysts forecast VRNS stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for VRNS is 52.18 USD with a low forecast of 37.00 USD and a high forecast of 80.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
18 Analyst Rating
14 Buy
4 Hold
0 Sell
Strong Buy
Current: 22.650
Low
37.00
Averages
52.18
High
80.00
Current: 22.650
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.
- Class Action Notice: Rosen Law Firm reminds investors who purchased Varonis Systems (NASDAQ: VRNS) common stock between February 4, 2025, and October 28, 2025, that they must apply to be lead plaintiff by March 9, 2026, or risk losing their right to compensation.
- Fee Arrangement: Investors joining the class action will incur no out-of-pocket expenses, as the law firm operates on a contingency fee basis, allowing investors to pursue potential compensation without financial burden.
- Lawsuit Background: The lawsuit alleges that Varonis failed to maintain annual recurring revenue (ARR) projections while transitioning to a software-as-a-service (SaaS) model, resulting in significant losses for investors once the true situation was revealed, indicating serious shortcomings in customer retention and conversion strategies.
- Law Firm's Strength: Rosen Law Firm is renowned for its successful track record in securities class actions, having recovered over $438 million for investors in 2019 alone, showcasing its expertise and resource advantages in handling such cases.
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- Lawsuit Notification Issued: Hagens Berman law firm has issued a notice to investors in Varonis Systems (NASDAQ: VRNS) regarding the March 9, 2026, lead plaintiff deadline in a pending securities class action lawsuit against the company and its executives, alleging market misrepresentation from February 4, 2025, to October 28, 2025.
- Significant Revenue Decline: The lawsuit highlights that Varonis revealed a staggering 63.9% year-over-year decline in term license subscription revenues on October 28, 2025, leading to a 48% stock crash in a single day, resulting in a market capitalization loss of $3.8 billion, severely impacting investor confidence.
- False Transition Promises: Despite claims of a smooth transition to a SaaS model and expectations of accelerated annual recurring revenue (ARR) growth, the lawsuit alleges that Varonis failed to effectively convince existing customers to migrate, resulting in performance misses.
- Guidance Cut Significantly: Following a disappointing Q3 performance, Varonis slashed its Q4 and full-year ARR guidance, reflecting systemic risks in its core growth strategy and exacerbating market concerns about its future performance.
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- Earnings Miss: Varonis reported third-quarter 2025 results that missed expectations, with a 63.9% year-over-year decline in annual subscription revenues, indicating significant challenges in maintaining ARR growth, which could undermine investor confidence moving forward.
- Stock Plunge: Following the disappointing earnings report, Varonis's stock price plummeted by $30.66, or 48.7%, closing at $32.34 per share on October 29, 2025, resulting in substantial losses for investors and reflecting a pessimistic outlook on the company's future.
- Lawsuit Allegations: The class action lawsuit alleges that Varonis failed to disclose material adverse facts regarding its business and prospects during the class period, particularly its inability to sustain ARR growth, which may have misled investors about the company's true performance.
- Legal Action Deadline: Investors must file a lead plaintiff motion by March 9, 2026, to participate in the class action; those who do not act will automatically become absent members, potentially affecting their rights to recover losses.
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- Fermi Inc. Lawsuit: The shareholder class action lawsuit against Fermi Inc. alleges that the company failed to disclose significant facts regarding tenant demand for its Project Matador campus between October 1 and December 11, 2025, leading to substantial investor losses, with a deadline of March 6, 2026, to apply as lead plaintiff.
- Ardent Health Case: The class action lawsuit against Ardent Health, Inc. claims that the company did not disclose material facts about the collectability of its accounts receivable from July 18, 2024, to November 12, 2025, and investors must apply by March 9, 2026, if they suffered losses during this period.
- Varonis Systems Lawsuit: The lawsuit against Varonis Systems, Inc. alleges that the company misled investors regarding its ability to convert its customer base and its ARR growth potential from February 4 to October 28, 2025, with a lead plaintiff application deadline of March 9, 2026.
- Law Firm Background: Holzer & Holzer, LLC, rated as a top securities litigation firm by ISS from 2021 to 2025, has been representing shareholders since 2000, recovering hundreds of millions for those affected by corporate misconduct.
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- Class Action Initiation: Robbins Geller law firm announces that investors who purchased Varonis Systems (NASDAQ: VRNS) common stock between February 4, 2025, and October 28, 2025, can apply to be lead plaintiff in the class action lawsuit by March 9, 2026, indicating strong investor concern over the company's financial transparency.
- Allegations: The lawsuit accuses Varonis and its executives of violating the Securities Exchange Act of 1934 by misleading investors regarding financial projections, failing to accurately reflect the sustainability of annual recurring revenue growth, which could lead to significant investor losses.
- Stock Price Plunge: Following the release of third-quarter results on October 28, 2025, which fell well below expectations, Varonis's stock price dropped nearly 49%, reflecting a severe lack of market confidence in the company's future growth potential, potentially impacting its financing capabilities and market position.
- Law Firm Background: Robbins Geller is one of the world's leading complex class action firms, recovering over $916 million for investors in 2025, showcasing its strong capabilities in securities fraud and shareholder rights litigation, which may attract more investors to participate in the lawsuit seeking compensation.
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- 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 participate in the class action without any out-of-pocket fees.
- 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 recovered over $438 million for investors in 2019 alone, being ranked No. 1 by ISS Securities Class Action Services in 2017, showcasing its strong capabilities in this field.
- Investor Guidance: Investors are advised to carefully select counsel with a proven track record to ensure effective representation in the class action, avoiding firms that merely act as intermediaries.
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