Class Action Filed Against Varonis Systems for Securities Violations
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 4d ago
0mins
Should l Buy VRNS?
Source: Globenewswire
- Class Action Initiated: Bronstein, Gewirtz & Grossman, LLC has announced a class action lawsuit against Varonis Systems and certain officers, aiming to recover damages for investors who purchased securities between February 4, 2025, and October 28, 2025, highlighting serious concerns over potential fraud by the company.
- Allegations of False Statements: The complaint alleges that Varonis made overly optimistic statements to investors while concealing its true inability to convert existing customers to its SaaS offerings, resulting in significantly reduced ARR growth potential and misleading investors in their purchasing decisions.
- Investor Rights Protection: Affected investors are encouraged to apply to be lead plaintiffs by March 9, 2026, to share in any potential recovery from the lawsuit, underscoring the importance of legal proceedings in safeguarding investor rights.
- No-Cost Representation: Bronstein, Gewirtz & Grossman, LLC offers contingency fee representation, meaning they only charge fees if they successfully recover funds, ensuring that investors do not bear additional financial burdens while pursuing compensation.
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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: 29.250
Low
37.00
Averages
52.18
High
80.00
Current: 29.250
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 Scheduled to Announce Q4 Earnings on February 3rd
- Earnings Announcement Schedule: Varonis (VRNS) is set to announce its Q4 earnings on February 3rd after market close, with consensus EPS estimate at $0.03, reflecting an 83.3% year-over-year decline, while revenue is estimated at $168.66 million, indicating a 6.4% year-over-year increase.
- Historical Performance: Over the past two years, Varonis has beaten EPS estimates 100% of the time and revenue estimates 63% of the time, demonstrating the company's stability in financial performance and maintaining market confidence.
- Estimate Revision Dynamics: In the last three months, EPS estimates have seen no upward revisions and one downward revision, while revenue estimates experienced one upward revision and two downward revisions, indicating a cautious market outlook on the company's future performance.
- Market Environment Pressure: As cloud migrations continue to rise, Morgan Stanley highlights the pressure on smaller cybersecurity vendors, which has negatively impacted Varonis's stock price, reflecting the potential threats posed by increasing industry competition.
See More
Notice of Class Action Lawsuit Against Varonis Systems
- 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, 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 persuade 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 success and resources in this field.
- Investor Guidance: Investors are advised to carefully select law firms with proven leadership experience, avoiding those that merely act as intermediaries, to ensure effective legal representation and support in the class action.
See More
Varonis Faces Class Action Lawsuit Impacting Stock Price
- Class Action Filed: Berger Montague PC has initiated a class action lawsuit against Varonis Systems on behalf of investors who acquired securities between February 4, 2025, and October 28, 2025, indicating significant investor dissatisfaction with the company's financial transparency.
- Financial Miss: Varonis disclosed a substantial annual recurring revenue (ARR) miss in its Q3 2025 financial results and lowered its full-year guidance for 2025, highlighting weaknesses in customer renewals and conversions, which has severely undermined investor confidence.
- Stock Price Plunge: Following the announcement on October 28, 2025, Varonis' stock plummeted from $63.00 to $32.34 per share, a dramatic decline of $30.66 or over 48% in a single day, reflecting a pessimistic outlook from the market regarding the company's future.
- Layoffs and Product Phase-Out: The company also announced a 5% workforce reduction and the discontinuation of its self-hosted solution, indicating a strategic contraction in response to market challenges, which may adversely affect its long-term competitiveness.
See More
Class Action Filed Against Varonis Systems for Securities Violations
- Class Action Initiated: Bronstein, Gewirtz & Grossman, LLC has announced a class action lawsuit against Varonis Systems, alleging violations of federal securities laws during the period from February 4, 2025, to October 28, 2025, aimed at recovering damages for investors.
- Allegations of False Statements: The complaint alleges that Varonis made overly optimistic statements to investors while concealing its true inability to convince existing customers to transition to its SaaS offerings, resulting in significantly reduced ARR growth potential.
- Investor Losses: Due to Varonis's misleading statements, investors purchased securities at artificially inflated prices, leading to potential financial losses, with a deadline of March 9, 2026, for investors to apply to be lead plaintiffs.
- Legal Fee Arrangement: The law firm operates on a contingency fee basis, meaning they will only charge fees if they successfully recover funds, thereby reducing financial risk for investors.
See More
Integer Holdings Faces Shareholder Investigation Over Alleged Misconduct
- Shareholder Investigation Initiated: Grabar Law Office is investigating Integer Holdings Corp. for potential breaches of fiduciary duties by its executives, allowing shareholders who purchased before July 25, 2024, to seek corporate reforms and fund recovery.
- False Statements Allegations: A recently filed securities fraud class action claims that Integer failed to disclose its true competitive position in the EP manufacturing market, severely undermining shareholder confidence in the company's business and prospects.
- Sales Decline Risks: Despite claims of strong visibility into customer demand, the company is experiencing a sustained deterioration in sales of its EP devices, indicating a significant gap between market performance and corporate messaging that could impact future revenue growth.
- Legal Consequences Risk: Due to the aforementioned false statements, shareholders may face financial losses, and the company could incur legal liabilities, further affecting its market reputation and stock price performance.
See More
Varonis Systems Faces Securities Class Action Lawsuit
- Lawsuit Notification Issued: Hagens Berman has notified investors regarding a securities class action lawsuit against Varonis Systems, Inc. (NASDAQ: VRNS), with a lead plaintiff deadline of March 9, 2026, affecting those who purchased shares between February 4 and October 28, 2025.
- Performance Decline Disclosure: On October 28, 2025, Varonis revealed a staggering 63.9% year-over-year decline in annual recurring revenue (ARR), leading to a 48% stock crash in a single day, resulting in a market capitalization loss of $3.8 billion, severely impacting investor confidence.
- Misleading Statements Allegations: The lawsuit alleges that Varonis executives misled investors about the seamless transition to a Software-as-a-Service (SaaS) model, claiming accelerated customer migration, while in reality, the transition was progressing much slower than represented.
- Guidance Cut Significantly: Following a disappointing Q3 performance, Varonis slashed its Q4 and full-year revenue guidance, exacerbating market concerns regarding its growth potential and future profitability.
See More
Varonis Scheduled to Announce Q4 Earnings on February 3rd
- Earnings Announcement Schedule: Varonis (VRNS) is set to announce its Q4 earnings on February 3rd after market close, with consensus EPS estimate at $0.03, reflecting an 83.3% year-over-year decline, while revenue is estimated at $168.66 million, indicating a 6.4% year-over-year increase.
- Historical Performance: Over the past two years, Varonis has beaten EPS estimates 100% of the time and revenue estimates 63% of the time, demonstrating the company's stability in financial performance and maintaining market confidence.
- Estimate Revision Dynamics: In the last three months, EPS estimates have seen no upward revisions and one downward revision, while revenue estimates experienced one upward revision and two downward revisions, indicating a cautious market outlook on the company's future performance.
- Market Environment Pressure: As cloud migrations continue to rise, Morgan Stanley highlights the pressure on smaller cybersecurity vendors, which has negatively impacted Varonis's stock price, reflecting the potential threats posed by increasing industry competition.
See More
Notice of Class Action Lawsuit Against Varonis Systems
- 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, 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 persuade 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 success and resources in this field.
- Investor Guidance: Investors are advised to carefully select law firms with proven leadership experience, avoiding those that merely act as intermediaries, to ensure effective legal representation and support in the class action.
See More
Varonis Faces Class Action Lawsuit Impacting Stock Price
- Class Action Filed: Berger Montague PC has initiated a class action lawsuit against Varonis Systems on behalf of investors who acquired securities between February 4, 2025, and October 28, 2025, indicating significant investor dissatisfaction with the company's financial transparency.
- Financial Miss: Varonis disclosed a substantial annual recurring revenue (ARR) miss in its Q3 2025 financial results and lowered its full-year guidance for 2025, highlighting weaknesses in customer renewals and conversions, which has severely undermined investor confidence.
- Stock Price Plunge: Following the announcement on October 28, 2025, Varonis' stock plummeted from $63.00 to $32.34 per share, a dramatic decline of $30.66 or over 48% in a single day, reflecting a pessimistic outlook from the market regarding the company's future.
- Layoffs and Product Phase-Out: The company also announced a 5% workforce reduction and the discontinuation of its self-hosted solution, indicating a strategic contraction in response to market challenges, which may adversely affect its long-term competitiveness.
See More
Class Action Filed Against Varonis Systems for Securities Violations
- Class Action Initiated: Bronstein, Gewirtz & Grossman, LLC has announced a class action lawsuit against Varonis Systems, alleging violations of federal securities laws during the period from February 4, 2025, to October 28, 2025, aimed at recovering damages for investors.
- Allegations of False Statements: The complaint alleges that Varonis made overly optimistic statements to investors while concealing its true inability to convince existing customers to transition to its SaaS offerings, resulting in significantly reduced ARR growth potential.
- Investor Losses: Due to Varonis's misleading statements, investors purchased securities at artificially inflated prices, leading to potential financial losses, with a deadline of March 9, 2026, for investors to apply to be lead plaintiffs.
- Legal Fee Arrangement: The law firm operates on a contingency fee basis, meaning they will only charge fees if they successfully recover funds, thereby reducing financial risk for investors.
See More
Integer Holdings Faces Shareholder Investigation Over Alleged Misconduct
- Shareholder Investigation Initiated: Grabar Law Office is investigating Integer Holdings Corp. for potential breaches of fiduciary duties by its executives, allowing shareholders who purchased before July 25, 2024, to seek corporate reforms and fund recovery.
- False Statements Allegations: A recently filed securities fraud class action claims that Integer failed to disclose its true competitive position in the EP manufacturing market, severely undermining shareholder confidence in the company's business and prospects.
- Sales Decline Risks: Despite claims of strong visibility into customer demand, the company is experiencing a sustained deterioration in sales of its EP devices, indicating a significant gap between market performance and corporate messaging that could impact future revenue growth.
- Legal Consequences Risk: Due to the aforementioned false statements, shareholders may face financial losses, and the company could incur legal liabilities, further affecting its market reputation and stock price performance.
See More
Varonis Systems Faces Securities Class Action Lawsuit
- Lawsuit Notification Issued: Hagens Berman has notified investors regarding a securities class action lawsuit against Varonis Systems, Inc. (NASDAQ: VRNS), with a lead plaintiff deadline of March 9, 2026, affecting those who purchased shares between February 4 and October 28, 2025.
- Performance Decline Disclosure: On October 28, 2025, Varonis revealed a staggering 63.9% year-over-year decline in annual recurring revenue (ARR), leading to a 48% stock crash in a single day, resulting in a market capitalization loss of $3.8 billion, severely impacting investor confidence.
- Misleading Statements Allegations: The lawsuit alleges that Varonis executives misled investors about the seamless transition to a Software-as-a-Service (SaaS) model, claiming accelerated customer migration, while in reality, the transition was progressing much slower than represented.
- Guidance Cut Significantly: Following a disappointing Q3 performance, Varonis slashed its Q4 and full-year revenue guidance, exacerbating market concerns regarding its growth potential and future profitability.
See More
