Investors in Varonis Systems Inc. Encouraged to Join Class Action Lawsuit Against Alleged Securities Fraud
In a recent announcement, Levi & Korsinsky, LLP has officially notified investors of Varonis Systems, Inc. (NASDAQ: VRNS) about a class action securities lawsuit aimed at recovering losses sustained due to alleged securities fraud. The lawsuit is particularly pertinent for investors who were affected by significant financial misstatements from the company between February 4, 2025, and October 28, 2025.
The lawsuit was initiated after Varonis provided overly optimistic projections and positive statements regarding its performance, while simultaneously omitting critical facts about its operations and the challenges it faced. According to the complaint, Varonis did not adequately convince its existing customer base to transition to its new Software as a Service (SaaS) model, which led to a substantial miss in Annual Recurring Revenue (ARR) projections. The repercussions of these discrepancies came to light after Varonis reported disappointing financial results for the third quarter of fiscal year 2025.
On October 28, 2025, the company disclosed that it had significantly missed its ARR targets and subsequently lowered its guidance for the entire fiscal year. This revelation shocked shareholders, especially given that the company had previously raised its forecasts in the prior two quarters. The primary issues outlined included weaker-than-expected renewals and conversions in both federal and non-federal subscription domains. Moreover, Varonis announced the discontinuation of its self-hosted solution and a 5% reduction in its workforce, fueling investor concern.
In a swift market reaction, Varonis' stock plummeted from $63.00 per share on October 28 to just $32.34 the following day, representing a staggering 48.67% drop within a mere 24 hours.
Participants in the class action are being sought urgently. If you believe you incurred losses as a result of your investment in Varonis Systems during the defined period, it is crucial to take action before the court-imposed deadline of March 9, 2026. Investors do not need to lead the lawsuit to be eligible for recovery; merely participating as a class member may entitle them to compensation without incurring any legal costs.
The presence of legal firm Levi & Korsinsky adds credibility to this lawsuit, as they are recognized for their expertise in managing complex securities litigation. With over two decades of experience, they have successfully secured hundreds of millions for shareholders and have been consistently ranked among the top securities litigation firms in the United States.
Investors looking to join the class action can contact Levi & Korsinsky directly. Queries can be directed to Joseph E. Levi, Esq. via email at [email protected] or by telephone at (212) 363-7500. Potential plaintiffs should act swiftly to ensure their involvement in this significant legal proceeding.
For more details, including how to submit a claim, visit their official website or follow the provided link for the lawsuit submission form. This is an opportunity for investors impacted by Varonis' recent downturn to seek compensation for their losses in what has proven to be a tumultuous period for the company.
Background of the Case
The lawsuit was initiated after Varonis provided overly optimistic projections and positive statements regarding its performance, while simultaneously omitting critical facts about its operations and the challenges it faced. According to the complaint, Varonis did not adequately convince its existing customer base to transition to its new Software as a Service (SaaS) model, which led to a substantial miss in Annual Recurring Revenue (ARR) projections. The repercussions of these discrepancies came to light after Varonis reported disappointing financial results for the third quarter of fiscal year 2025.
On October 28, 2025, the company disclosed that it had significantly missed its ARR targets and subsequently lowered its guidance for the entire fiscal year. This revelation shocked shareholders, especially given that the company had previously raised its forecasts in the prior two quarters. The primary issues outlined included weaker-than-expected renewals and conversions in both federal and non-federal subscription domains. Moreover, Varonis announced the discontinuation of its self-hosted solution and a 5% reduction in its workforce, fueling investor concern.
In a swift market reaction, Varonis' stock plummeted from $63.00 per share on October 28 to just $32.34 the following day, representing a staggering 48.67% drop within a mere 24 hours.
Next Steps for Affected Investors
Participants in the class action are being sought urgently. If you believe you incurred losses as a result of your investment in Varonis Systems during the defined period, it is crucial to take action before the court-imposed deadline of March 9, 2026. Investors do not need to lead the lawsuit to be eligible for recovery; merely participating as a class member may entitle them to compensation without incurring any legal costs.
The presence of legal firm Levi & Korsinsky adds credibility to this lawsuit, as they are recognized for their expertise in managing complex securities litigation. With over two decades of experience, they have successfully secured hundreds of millions for shareholders and have been consistently ranked among the top securities litigation firms in the United States.
Contact Information
Investors looking to join the class action can contact Levi & Korsinsky directly. Queries can be directed to Joseph E. Levi, Esq. via email at [email protected] or by telephone at (212) 363-7500. Potential plaintiffs should act swiftly to ensure their involvement in this significant legal proceeding.
For more details, including how to submit a claim, visit their official website or follow the provided link for the lawsuit submission form. This is an opportunity for investors impacted by Varonis' recent downturn to seek compensation for their losses in what has proven to be a tumultuous period for the company.
Topics Financial Services & Investing）
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