#United States #New York #Securities Class Action #Faruqi LLP #Varonis Systems

Faruqi & Faruqi Investigates Varonis Systems: An Investor's Perspective

Faruqi & Faruqi, LLP, a notable national securities law firm, is actively looking into possible claims on behalf of investors regarding Varonis Systems, Inc. (NASDAQ: VRNS). This investigation stems from significant drops in the company’s stock price and disappointing financial forecasts that could impact numerous stakeholders. Investors who acquired Varonis shares between February 4, 2025, and October 28, 2025, are particularly urged to consider their legal options.

Background Information

Varonis Systems, known for its comprehensive data security solutions, faced scrutiny on October 28, 2025, when the company disclosed its third-quarter financial results for fiscal 2025. The announcement shocked investors, revealing that the firm had significantly missed its Annual Recurring Revenue (ARR) targets and subsequently lowered its guidance for the full fiscal year. Previously optimistic projections led many shareholders to invest under the impression that the company was on a consistent upward trajectory, only to face a harsh reality shortly thereafter.

The firm attributed its disappointing results to weaker-than-expected customer renewals and conversions within their federal and non-federal on-premises subscription business. This announcement not only triggered an immediate stock price decline from $63.00 to approximately $32.34, representing a staggering loss of about 48.67% in just one day, but it also raised concerns about Varonis’ ability to retain its customer base and successfully transition them to modern offerings like Software as a Service (SaaS).

Legal Implications and Call to Action

Faruqi & Faruqi is encouraging investors who experienced financial losses due to the downward spiral of Varonis stock to reach out directly to Senior Partner James (Josh) Wilson. He can be contacted at 877-247-4292 or 212-983-9330 (extension 1310) for an overview of their legal rights in this situation. Investors can also join a federal securities class action lawsuit against Varonis due by March 9, 2026. The lawsuit seeks to hold the company and its executives accountable for the alleged misleading information that was shared with investors.

The core of the complaint suggests that Varonis and its leaders may have violated federal securities laws by providing a narrative that was overly optimistic while not disclosing critical adverse information. This lack of transparency has led to claims that investors bought shares at inflated prices without knowledge of the underlying struggles significantly affecting the company's performance and potential future revenue.

Being appointed as a lead plaintiff allows individuals with the largest financial stake in the matter to play an integral role in guiding the litigation process. However, participation as a lead plaintiff is not a requirement for potential recovery; investors can choose to remain absent members of the class and not lose their ability to claim recovery in eventual settlements that the lawsuit may yield.

Conclusion

As the situation unfolds, Faruqi & Faruqi remains vigilant in keeping stakeholders informed. They are also seeking individuals with additional insights or information about Varonis’s company practices, including whistleblowers or former employees, who may assist in reinforcing the claims being brought forth. If you are among the affected investors or have pertinent information regarding this case, you are encouraged to act promptly. You can learn more about this investigation or reach out to the firm through their website at www.faruqilaw.com/VRNS.

In light of the recent financial developments within Varonis Systems, the importance of investor awareness and action cannot be overstated. Keep following the updates as the legal proceedings develop and ensure that you are informed and engaged regarding your investments.