Varonis Faces Class Action Lawsuit Impacting Stock Price
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 hour ago
0mins
Should l Buy VRNS?
Source: PRnewswire
- Class Action Filed: Pomerantz LLP has initiated a class action lawsuit against Varonis Systems, alleging securities fraud and unlawful business practices, with investors urged to apply as Lead Plaintiff by March 9, 2026, indicating significant legal risks that could undermine investor confidence.
- Disappointing Earnings: Varonis reported third-quarter 2025 results that missed consensus estimates, with a staggering 63.9% year-over-year decline in term license subscription revenues, prompting management to lower full-year ARR guidance, reflecting competitive pressures and challenges in its business model.
- Stock Price Plunge: Following the disappointing earnings report, Varonis's stock price plummeted by 48.67% to close at $32.34 per share on October 29, 2025, signaling a pessimistic outlook from the market regarding the company's future performance and potential investor attrition.
- Management's Warning: CEO Yakov Faitelson highlighted that the on-premises subscription business is a drag on total ARR growth, with lower renewal rates attributed to sales process issues, indicating a need for strategic adjustments to regain growth momentum.
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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: 25.700
Low
37.00
Averages
52.18
High
80.00
Current: 25.700
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 Faces Class Action Lawsuit Impacting Stock Price
- Class Action Filed: Pomerantz LLP has initiated a class action lawsuit against Varonis Systems, alleging securities fraud and unlawful business practices, with investors urged to apply as Lead Plaintiff by March 9, 2026, indicating significant legal risks that could undermine investor confidence.
- Disappointing Earnings: Varonis reported third-quarter 2025 results that missed consensus estimates, with a staggering 63.9% year-over-year decline in term license subscription revenues, prompting management to lower full-year ARR guidance, reflecting competitive pressures and challenges in its business model.
- Stock Price Plunge: Following the disappointing earnings report, Varonis's stock price plummeted by 48.67% to close at $32.34 per share on October 29, 2025, signaling a pessimistic outlook from the market regarding the company's future performance and potential investor attrition.
- Management's Warning: CEO Yakov Faitelson highlighted that the on-premises subscription business is a drag on total ARR growth, with lower renewal rates attributed to sales process issues, indicating a need for strategic adjustments to regain growth momentum.
See More
Reminder of Class Action 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, 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 customers to transition to the software-as-a-service (SaaS) model, resulting in significantly reduced ARR growth potential and subsequent investor losses.
- Law Firm 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 strong capabilities and successful track record in this field.
- Investor Guidance: Investors are advised to carefully select law firms with proven success in leadership roles, avoiding those that merely act as intermediaries, to ensure effective legal representation and support in the class action.
See More
Varonis Systems Faces Securities Class Action Lawsuit
- Lawsuit Notification: Hagens Berman law firm is notifying investors in Varonis Systems, Inc. regarding the March 9, 2026 lead plaintiff deadline in a securities class action lawsuit alleging that executives concealed significant renewal softness in the Federal vertical and legacy on-premises business.
- Revenue Crash: 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, triggering a 48% single-day stock crash that wiped out approximately $3.8 billion in market value.
- False Statement Allegations: The lawsuit claims Varonis misled investors by assuring them of accelerated SaaS transition and significant conversion potential from existing customers, while failing to convince on-premises users to migrate at the expected pace, leading to performance misses.
- Investor Losses: 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.
See More
Varonis Systems Faces Class Action Lawsuit for Misleading Statements
- Class Action Reminder: The Schall Law Firm alerts investors of a class action lawsuit against Varonis Systems for violations of securities laws, with a class period from February 4, 2025, to October 28, 2025, urging investors to contact the firm by March 9, 2026, to participate.
- False Statement Allegations: The complaint alleges that Varonis made misleadingly optimistic statements regarding its ability to convert existing customers to its SaaS platform, despite knowing it was struggling to persuade customers, thereby limiting its annual recurring revenue (ARR) growth potential.
- Market Reaction: As the market learned the truth about Varonis, investors suffered losses, indicating that the company's public statements were false and materially misleading throughout the class period, damaging investor interests significantly.
- Legal Consultation Opportunity: The Schall Law Firm offers free consultations and encourages affected investors to take action before the class certification occurs to ensure their rights are protected and to have a chance to recover their losses.
See More
Varonis Systems Shareholder Notice Issued
- Shareholder Notice Issued: The Gross Law Firm has issued a notice to shareholders of Varonis Systems, Inc. (NASDAQ:VRNS), encouraging those who purchased shares during the class period from February 4, 2025, to October 28, 2025, to contact the firm regarding potential lead plaintiff appointment for recovery participation.
- Significant Financial Decline: Varonis reported a substantial miss in annual recurring revenue (ARR) in its Q3 2025 financial results, leading to a downward revision of its full-year 2025 guidance, primarily due to weaker-than-expected customer renewals and conversions, which has severely impacted investor confidence.
- Stock Price Volatility: Following the announcement on October 28, 2025, Varonis' stock plummeted from $63.00 per share to $32.34 per share the next day, marking a dramatic decline of 48.67% in just one day, indicating extreme pessimism among investors regarding the company's future prospects.
- Layoffs and Product Termination: The company announced a 5% reduction in workforce and the discontinuation of its self-hosted solution, highlighting significant challenges in its transition strategy that could affect long-term business growth and market competitiveness.
See More
Faruqi & Faruqi Investigates Varonis Securities Litigation
- Legal Investigation: Faruq & Faruq LLP is investigating potential claims against Varonis Systems, Inc. due to significant misses in annual recurring revenue (ARR) reported on October 28, 2025, leading to investor losses.
- Stock Price Plunge: On October 28, 2025, Varonis's stock price plummeted from $63.00 to $32.34 per share, representing a dramatic decline of approximately 48.67% in a single day, reflecting severe market concerns about the company's growth potential.
- False Statement Allegations: The lawsuit alleges that Varonis and its executives violated federal securities laws by making overly optimistic statements to investors while failing to disclose critical adverse facts, resulting in investors purchasing shares at artificially inflated prices.
- Investor Rights Protection: Faruq & Faruq LLP reminds investors that March 9, 2026, is the deadline to seek the role of lead plaintiff in the federal securities class action, encouraging affected investors to contact them directly to discuss their legal rights.
See More
Varonis Faces Class Action Lawsuit Impacting Stock Price
- Class Action Filed: Pomerantz LLP has initiated a class action lawsuit against Varonis Systems, alleging securities fraud and unlawful business practices, with investors urged to apply as Lead Plaintiff by March 9, 2026, indicating significant legal risks that could undermine investor confidence.
- Disappointing Earnings: Varonis reported third-quarter 2025 results that missed consensus estimates, with a staggering 63.9% year-over-year decline in term license subscription revenues, prompting management to lower full-year ARR guidance, reflecting competitive pressures and challenges in its business model.
- Stock Price Plunge: Following the disappointing earnings report, Varonis's stock price plummeted by 48.67% to close at $32.34 per share on October 29, 2025, signaling a pessimistic outlook from the market regarding the company's future performance and potential investor attrition.
- Management's Warning: CEO Yakov Faitelson highlighted that the on-premises subscription business is a drag on total ARR growth, with lower renewal rates attributed to sales process issues, indicating a need for strategic adjustments to regain growth momentum.
See More
Reminder of Class Action 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, 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 customers to transition to the software-as-a-service (SaaS) model, resulting in significantly reduced ARR growth potential and subsequent investor losses.
- Law Firm 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 strong capabilities and successful track record in this field.
- Investor Guidance: Investors are advised to carefully select law firms with proven success in leadership roles, avoiding those that merely act as intermediaries, to ensure effective legal representation and support in the class action.
See More
Varonis Systems Faces Securities Class Action Lawsuit
- Lawsuit Notification: Hagens Berman law firm is notifying investors in Varonis Systems, Inc. regarding the March 9, 2026 lead plaintiff deadline in a securities class action lawsuit alleging that executives concealed significant renewal softness in the Federal vertical and legacy on-premises business.
- Revenue Crash: 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, triggering a 48% single-day stock crash that wiped out approximately $3.8 billion in market value.
- False Statement Allegations: The lawsuit claims Varonis misled investors by assuring them of accelerated SaaS transition and significant conversion potential from existing customers, while failing to convince on-premises users to migrate at the expected pace, leading to performance misses.
- Investor Losses: 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.
See More
Varonis Systems Faces Class Action Lawsuit for Misleading Statements
- Class Action Reminder: The Schall Law Firm alerts investors of a class action lawsuit against Varonis Systems for violations of securities laws, with a class period from February 4, 2025, to October 28, 2025, urging investors to contact the firm by March 9, 2026, to participate.
- False Statement Allegations: The complaint alleges that Varonis made misleadingly optimistic statements regarding its ability to convert existing customers to its SaaS platform, despite knowing it was struggling to persuade customers, thereby limiting its annual recurring revenue (ARR) growth potential.
- Market Reaction: As the market learned the truth about Varonis, investors suffered losses, indicating that the company's public statements were false and materially misleading throughout the class period, damaging investor interests significantly.
- Legal Consultation Opportunity: The Schall Law Firm offers free consultations and encourages affected investors to take action before the class certification occurs to ensure their rights are protected and to have a chance to recover their losses.
See More
Varonis Systems Shareholder Notice Issued
- Shareholder Notice Issued: The Gross Law Firm has issued a notice to shareholders of Varonis Systems, Inc. (NASDAQ:VRNS), encouraging those who purchased shares during the class period from February 4, 2025, to October 28, 2025, to contact the firm regarding potential lead plaintiff appointment for recovery participation.
- Significant Financial Decline: Varonis reported a substantial miss in annual recurring revenue (ARR) in its Q3 2025 financial results, leading to a downward revision of its full-year 2025 guidance, primarily due to weaker-than-expected customer renewals and conversions, which has severely impacted investor confidence.
- Stock Price Volatility: Following the announcement on October 28, 2025, Varonis' stock plummeted from $63.00 per share to $32.34 per share the next day, marking a dramatic decline of 48.67% in just one day, indicating extreme pessimism among investors regarding the company's future prospects.
- Layoffs and Product Termination: The company announced a 5% reduction in workforce and the discontinuation of its self-hosted solution, highlighting significant challenges in its transition strategy that could affect long-term business growth and market competitiveness.
See More
Faruqi & Faruqi Investigates Varonis Securities Litigation
- Legal Investigation: Faruq & Faruq LLP is investigating potential claims against Varonis Systems, Inc. due to significant misses in annual recurring revenue (ARR) reported on October 28, 2025, leading to investor losses.
- Stock Price Plunge: On October 28, 2025, Varonis's stock price plummeted from $63.00 to $32.34 per share, representing a dramatic decline of approximately 48.67% in a single day, reflecting severe market concerns about the company's growth potential.
- False Statement Allegations: The lawsuit alleges that Varonis and its executives violated federal securities laws by making overly optimistic statements to investors while failing to disclose critical adverse facts, resulting in investors purchasing shares at artificially inflated prices.
- Investor Rights Protection: Faruq & Faruq LLP reminds investors that March 9, 2026, is the deadline to seek the role of lead plaintiff in the federal securities class action, encouraging affected investors to contact them directly to discuss their legal rights.
See More
