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Investigation into Varonis Systems, Inc.

Edelson Lechtzin LLP, a notable class action law firm, is currently investigating Varonis Systems, Inc. (NASDAQ: VRNS) for potentially violating federal securities laws. This investigation follows significant financial results that have raised concerns about the company’s business practices. Investors who believe they have suffered substantial losses or possess relevant information are urged to contact the firm for further insights into the situation.

The Company Overview

Varonis Systems specializes in data security, particularly aiding organizations in safeguarding sensitive information across both on-premises and cloud environments. They enhance security through various means, including threat detection, access management, and compliance automation. However, recent performance reports have sparked scrutiny of Varonis’s practices and responsibilities to its investors.

The Allegations of Wrongdoing

On October 28, 2025, Varonis disclosed its financial performance for the third quarter, which notably fell short of market expectations. Revenues from term license subscriptions dropped sharply by 63.9%, landing at $24.8 million, while maintenance and services saw a decline of 49.1%, totaling just $10.9 million. The company also announced a reduction in its annual recurring revenue (ARR) forecast. This downturn was attributed to underwhelming on-premises subscriptions and various sales hurdles.

As a result of this troubling news, Varonis’s stock price experienced a dramatic plummet, falling 48.67% and closing at $32.34 per share on October 29, 2025. Such a steep drop indicates the potential ramifications for investors who may have been misled or inadequately informed regarding the company's financial health.

Call to Action for Investors

Edelson Lechtzin LLP is encouraging any investors who have experienced losses related to Varonis or anyone with non-public information that could assist in the investigation to reach out. Those interested can contact the firm directly. Attorney Eric Lechtzin can be reached at 844-563-5550 ext. 1 or by email at [email protected], for assistance and guidance on how to proceed in potential securities claims arising from these alleged violations.

About Edelson Lechtzin LLP

Founded with a keen focus on protecting investors and advocating for justice, Edelson Lechtzin LLP operates nationwide, with offices situated in Pennsylvania and California. The firm specializes in class actions, particularly in areas such as securities and investment fraud, violations of antitrust laws, and consumer protection. Their team is committed to securing justice for clients navigating complex legal landscapes and securing their rights in investment matters.

In light of the current investigation into Varonis Systems, investors need to remain vigilant and proactive in understanding their rights and options. For additional information, parties can visit the firm’s website at www.edelson-law.com for resources and updates related to ongoing cases and investigations.