Notice of Class Action Lawsuit Against Varonis Systems, Inc.
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
0mins
Source: PRnewswire
- Class Action Initiation: Robbins Geller Rudman & Dowd LLP announces that purchasers of Varonis Systems, Inc. (NASDAQ:VRNS) common stock between February 4, 2025, and October 28, 2025, can seek lead plaintiff status by March 9, 2026, indicating strong investor concern over the company's financial transparency.
- Allegations of the Lawsuit: The lawsuit alleges that Varonis and its executives violated the Securities Exchange Act of 1934 by misleading investors about financial projections and growth prospects, resulting in significant losses during market fluctuations, highlighting potential risks in corporate governance and information disclosure.
- Impact of Stock Price Drop: Following the release of third-quarter results on October 28, 2025, which fell well below expectations, Varonis's stock price plummeted nearly 49%, affecting investor confidence and potentially placing the company at a disadvantage in future financing and market competition.
- Legal Process Overview: Under the Private Securities Litigation Reform Act of 1995, any investor who purchased Varonis stock during the class period can apply to be the lead plaintiff, who will represent all other investors in the lawsuit, demonstrating the proactive stance of investors in protecting their rights.
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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: 30.570
Low
37.00
Averages
52.18
High
80.00
Current: 30.570
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.
Notice of Class Action Lawsuit Against Varonis Systems, Inc.
- Class Action Initiation: Robbins Geller Rudman & Dowd LLP announces that purchasers of Varonis Systems, Inc. (NASDAQ:VRNS) common stock between February 4, 2025, and October 28, 2025, can seek lead plaintiff status by March 9, 2026, indicating strong investor concern over the company's financial transparency.
- Allegations of the Lawsuit: The lawsuit alleges that Varonis and its executives violated the Securities Exchange Act of 1934 by misleading investors about financial projections and growth prospects, resulting in significant losses during market fluctuations, highlighting potential risks in corporate governance and information disclosure.
- Impact of Stock Price Drop: Following the release of third-quarter results on October 28, 2025, which fell well below expectations, Varonis's stock price plummeted nearly 49%, affecting investor confidence and potentially placing the company at a disadvantage in future financing and market competition.
- Legal Process Overview: Under the Private Securities Litigation Reform Act of 1995, any investor who purchased Varonis stock during the class period can apply to be the lead plaintiff, who will represent all other investors in the lawsuit, demonstrating the proactive stance of investors in protecting their rights.
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Varonis Systems Faces Securities Class Action Lawsuit
- Lawsuit Notification Issued: Hagens Berman has issued a notice to investors in Varonis Systems, Inc. (NASDAQ: VRNS) regarding the March 9, 2026, lead plaintiff deadline in a pending securities class action lawsuit against the company and its executives.
- Performance Decline Revealed: The lawsuit alleges that Varonis executives misled investors, as evidenced by a 63.9% year-over-year decline in term license subscription revenues disclosed on October 28, 2025, leading to a staggering 48% stock crash and a $3.8 billion loss in market capitalization, severely impacting investor confidence.
- False Statements Allegation: The lawsuit claims Varonis misrepresented its ability to transition on-premise customers to a SaaS model, while in reality, the company struggled to convince its existing users to migrate, resulting in performance misses.
- Guidance Cut Significantly: Following the disappointing Q3 results, Varonis slashed its Q4 revenue and full-year ARR guidance, further exacerbating market concerns regarding its future growth potential.
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