Pomerantz Law Firm Alerts Investors of Class Action Against Varonis Systems Due to Security Fraud Issues

Investor Alert: Pomerantz Law Firm Files Class Action Against Varonis Systems

Pomerantz LLP has recently announced a class action lawsuit against Varonis Systems, Inc., a leading data security firm, trading under NASDAQ symbol VRNS. This legal action primarily addresses potential securities fraud and other unlawful business practices allegedly committed by Varonis and certain associated executives or directors.

Background of the Case
Investors who have incurred losses on their Varonis investments are advised to reach out to Danielle Peyton at 646-581-9980 or via email at [email protected], providing details such as their mailing address, phone number, and the number of shares purchased. Interested parties have until March 9, 2026, to apply to be appointed as Lead Plaintiff for the investor class. All relevant documents, including the full complaint, can be accessed at Pomerantz Law Website.

This legal notice comes in light of Varonis's alarming financial results disclosed on October 28, 2025, where the company reported a significant revenue shortfall, including a staggering 63.9% year-over-year decrease in term license subscription revenues. Following this announcement, Varonis executives revealed that they were lowering their annual recurring revenue (ARR) guidance due to underwhelming performance in their on-premises subscription model. In a stark assessment, co-founder and CEO Yakov Faitelson labeled the on-premises subscription model a "drag on total company ARR growth."

Stock Price Response and Legal Implications
Following the distressing financial results, Varonis’s stock plummeted by $30.66 per share, a drastic decline of 48.67%, closing at $32.34 on October 29, 2025. Such a dramatic fall raised eyebrows and led to suspicions regarding the company’s transparency and business practices, culminating in the current class action lawsuit from Pomerantz LLP.

Pomerantz is renowned for its history in handling corporate, securities, and antitrust class litigation and has won numerous multi-million dollar settlements on behalf of class members in similar cases. Founded by the late Abraham L. Pomerantz, known as a pioneering figure in securities law, the firm remains dedicated to advocating for investors who have suffered from corporate misconduct and breaches of fiduciary duty.

The overarching aim of the lawsuit will be to address the alleged deceptive practices by Varonis’s management that misled investors about the company's financial health and operational strategies. This case highlights the crucial nature of investor vigilance and the legal recourse available for those affected by securities fraud. Investors are urged to stay updated on developments in the case and to act promptly to protect their rights.

For more insights and updates, investors can follow the proceedings through Pomerantz's official channels and ensure that their voices are represented in the legal process as well as safeguarding their financial interests.

How to Participate

Investors considering participation must act swiftly as time is of the essence. Being part of a class action lawsuit not only provides a collective voice but can lead to greater pressure on corporations to uphold ethical standards and transparency in their operations.

For those wishing to join, the information packet necessary for participation and details about the claims being made are accessible through Pomerantz Law Firm’s website. This is an essential opportunity for affected shareholders to hold Varonis accountable and seek potential remedies correlated to their financial losses.