Pomerantz Law Firm Issues Notice for Varonis Systems Investors Regarding Class Action Lawsuit and Deadlines

Investor Alert: Varonis Systems, Inc. Class Action Lawsuit

Pomerantz Law Firm has recently announced the filing of a class action lawsuit against Varonis Systems, Inc. (NASDAQ: VRNS). This lawsuit is particularly focused on investors who experienced losses related to their investments in Varonis. Individuals who purchased or acquired Varonis securities during the class period are urged to take action before the upcoming deadline.

Background of the Class Action

The class action centers around allegations of securities fraud and possible unlawful business practices by Varonis and certain officers or directors. Those affected should reach out to Pomerantz to explore their rights concerning the lawsuit. Interested investors are encouraged to contact Danielle Peyton either at her email provided in the announcement or via phone to seek further information.

Key Dates to Remember

Investors have until March 9, 2026, to file a request to the Court to appoint themselves as Lead Plaintiff if they qualify. This is a crucial date for those considering participating in the legal proceedings to safeguard their interests following significant declines in stock performance.

Financial Performance Concerns

On October 28, 2025, Varonis reported disappointing financial results for the third quarter. The company indicated a 63.9% drop in term license subscription revenues compared to the previous year, which raised red flags about its operational performance. This led to a reduced full-year Annual Recurring Revenue (ARR) guidance, an ominous sign for the company's future projections.

During a subsequent earnings call, Varonis' CEO, Yakov Faitelson, acknowledged that challenges in their on-premises subscription business were affecting overall growth negatively. Management cited various sales process issues that compounded their struggles with renewal rates for on-prem subscriptions.

Share Price Impact

Following the unfavorable news regarding its financial situation, Varonis's stock price plummeted by $30.66, marking a 48.67% decline, and ultimately closing at $32.34 per share on October 29, 2025. The sharp drop in stock value exemplifies the immediate market reaction to the company's operational shortcomings and the resulting skepticism surrounding its future prospects.

About Pomerantz LLP

Pomerantz LLP is recognized as a leading force in the realm of corporate, securities, and antitrust class actions. Established over 85 years ago by Abraham L. Pomerantz, the firm has dedicated itself to advocating for victims of corporate misconduct and securities fraud. Over the years, Pomerantz has achieved numerous multimillion-dollar settlements that have secured justice for many class members.

For additional details regarding participating in the class action, individuals can visit Pomerantz Law Firm for more information. Furthermore, potential class members who wish to receive a copy of the complaint and other documents related to the class action lawsuit should take action before the March 9 deadline.

Conclusion

Investors in Varonis Systems, Inc. facing losses have a critical opportunity to join a class action led by Pomerantz LLP. By staying informed and participating, they can seek recovery for their losses due to the company’s alleged misconduct. As always, investors are encouraged to conduct their own due diligence and consult with legal experts to understand the implications of these developments on their investments.