#USA #San Francisco #Hagens Berman #Varonis Systems #SaaS Transition

Hagens Berman Investigates Varonis Systems (VRNS)

Hagens Berman Sobol Shapiro LLP, a prominent law firm advocating for shareholders, has recently issued an investor notice regarding Varonis Systems, Inc. (NASDAQ: VRNS). The firm is examining allegations surrounding the company's transition to a Software-as-a-Service (SaaS) model amidst claims of misleading statements about the effectiveness of this shift. This scrutiny comes as investors face significant financial repercussions linked to the company's performance.

Background of the Investigation

On January 29, 2026, Hagens Berman alerted shareholders about a class action lawsuit currently pending against Varonis. This legal action highlights concerns that Varonis's executives may have misled investors about the company's ability to effectively transition from its traditional on-premises offerings to a new SaaS platform.

The litigation specifically addresses claims that executives made optimistic statements about the company's potential for annual recurring revenue (ARR) growth. However, when Varonis revealed a staggering 63.9% decline in term license subscription revenues on October 28, 2025, investor confidence plummeted. In a single day, stock prices dropped almost 48%, resulting in a staggering loss of $3.8 billion in market capitalization.

Allegations of Misleading Information

The heart of the lawsuit revolves around numerous claims that Varonis provided false assurances about its SaaS transition. Executives indicated they were 'well on the way' to becoming a full SaaS company and that it would accelerate their transition beyond initial expectations. They touted a 'massive opportunity' to enhance ARR from their existing customer base and assured investors that renewal rates remained strong.

Contrary to these statements, the lawsuit alleges serious deficiencies in Varonis's ability to encourage its existing customers to migrate to SaaS services. This fundamental misalignment between what was promised and reality has led to an investigation into the company's operational transparency.

Collapse and Significant Guidance Reductions

The consequences of these alleged misrepresentations became glaringly obvious when Varonis reported weak performance in both its federal and non-federal verticals. Following these revelations, the company drastically reduced its revenue guidance for the fourth quarter and adjusted its full-year ARR predictions downward, furthering investor concerns.

Investors who purchased shares between February 4, 2025, and October 28, 2025, are urged to reach out to Hagens Berman and report their losses as the lead plaintiff deadline for this class action case approaches on March 9, 2026.

Next Steps for Investors

Reed Kathrein, the partner at Hagens Berman leading this investigation, actively encourages affected investors to come forward. The firm is known for its successful track record in handling complex securities fraud cases, having secured over $2.9 billion in settlements for clients in similar situations. Interested investors can submit their loss details through Hagens Berman’s dedicated case page for Varonis.

In addition to pursuing legal recourse for shareholders, the firm also appeals to whistleblowers with non-public information about Varonis. The SEC's Whistleblower Program offers significant rewards for those who provide original information that leads to a successful recovery in cases of corporate misconduct.

For more details, those seeking information on the ongoing investigation can visit the Varonis case summary provided by Hagens Berman. As this case progresses, updates will be available to ensure affected investors remain informed about their potential claim and associated deadlines.