Varonis Systems Faces Class Action Lawsuit Over Securities Fraud, Stock Plummets 49%
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 17h ago
0mins
Source: Businesswire
- Lawsuit Allegations: Varonis Systems is accused of disseminating false financial information between February and October 2025, misleading investors about its revenue outlook and leading to a class action lawsuit.
- Stock Plunge: Following the release of third-quarter results on October 28, 2025, which fell significantly short of expectations, Varonis's stock price plummeted nearly 49%, indicating severe market concerns regarding its financial health.
- Management Accountability: CEO Yakov Faitelson attributed the disappointing results to lower renewals at the end of the quarter, highlighting the company's inability to sustain its annual recurring revenue growth trajectory.
- Investor Action: Under the Private Securities Litigation Reform Act of 1995, investors who purchased Varonis stock during the class period can seek to be appointed as lead plaintiff, representing other shareholders in pursuit of damages.
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 57.61 USD with a low forecast of 40.00 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.
19 Analyst Rating
15 Buy
4 Hold
0 Sell
Strong Buy
Current: 35.750
Low
40.00
Averages
57.61
High
80.00
Current: 35.750
Low
40.00
Averages
57.61
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.
