Varonis Systems, Inc. Investors Can Step Forward for Class Action Representation Amid Losses

Introduction

In a significant development for shareholders of Varonis Systems, Inc. (NASDAQ: VRNS), those who purchased common stock between February 4, 2025, and October 28, 2025, are being called to action. The law firm Robbins Geller Rudman & Dowd LLP has announced an opportunity for these investors to step forward as lead plaintiffs in a class action lawsuit against the company. The deadline for seeking this leadership role in the lawsuit is March 9, 2026.

Background of the Lawsuit

The lawsuit, officially titled Molchanov v. Varonis Systems, Inc., alleges that the company and its top executives engaged in practices that misled investors regarding its financial health and growth prospects. Specifically, the complaint suggests that Varonis portrayed a falsely optimistic image of its revenue outlook and minimized the risks associated with fluctuations in the macroeconomic environment.

During this class period, Varonis reported its revenue projections and growth strategies yet failed in their execution. The claims assert that the company was inadequately prepared to sustain its annual recurring revenue growth trajectory without a high rate of conversion from its existing client base to its software-as-a-service (SaaS) offerings. The situation deteriorated markedly when, in a shocking announcement on October 28, 2025, the company reported third-quarter results that drastically underperformed expectations, coupled with a downward revision of its full-year guidance.

In the aftermath of this announcement, Varonis’s stock plummeted approximately 49%, inflicting substantial losses on investors. CEO Yakov Faitelson added to the turmoil by attributing the underperformance to fewer contract renewals in key segments, intensifying the concerns over the company’s ability to navigate future challenges.

The Lead Plaintiff Process

Under the Private Securities Litigation Reform Act of 1995, any investor who acquired Varonis common stock during the class period can apply to be appointed as the lead plaintiff in the class action lawsuit. The lead plaintiff is typically the individual or entity that has the most significant financial interest in the case and is representative of the interests of all class members. This person will typically direct the lawsuit and make critical decisions regarding its progress.

It's important to note that an investor’s opportunity to benefit from any potential recovery in the class action does not rely on being the lead plaintiff. Class members can still partake in any collections through the lawsuit regardless of their role.

About Robbins Geller

Robbins Geller Rudman & Dowd LLP stands out as one of the leading law firms dealing with complex class actions and representing plaintiffs involved in securities fraud and shareholder rights issues. Notably, the firm ranked #1 in the ISS Securities Class Action Services Top 50 Report for 2025, recovering over $916 million for investors during that year alone. Historically, Robbins Geller has recovered a staggering $8.4 billion for investors over the past five years, making it a formidable player in the landscape of class action representation.

As this case develops, Varonis investors who experienced financial losses during the specified period are encouraged to seek legal representation to explore their rights and the possibility of class action involvement. For more information about the lawsuit, investors may contact attorney J.C. Sanchez at Robbins Geller or refer to the law firm's dedicated website for the case.

Conclusion

The unfolding situation around Varonis Systems, Inc. serves as a critical reminder for investors to remain vigilant and informed about their rights, especially in instances of substantial financial loss. Engaging with experienced legal representation can provide clarity and direction in navigating the complexities of securities litigation.

For those interested in taking action, time is of the essence. Make sure to adhere to the March 9, 2026, deadline for lead plaintiff applications to ensure a voice in this pivotal legal battle.