#United States #Robbins Geller #San Diego #Class Action #Varonis Systems

Investor Notice for Varonis Systems, Inc. (VRNS)

Introduction

In recent news, Robbins Geller Rudman & Dowd LLP is reaching out to investors who have sustained considerable financial losses in Varonis Systems, Inc. (NASDAQ: VRNS). This initiative presents an opportunity for affected individuals to potentially take on the role of lead plaintiff in a forthcoming class action lawsuit. This lawsuit is primarily focused around securities law violations by the company and several of its top executives.

The Class Action Lawsuit Explained

The class action lawsuit against Varonis has been officially filed under the case title Molchanov v. Varonis Systems, Inc. in the Southern District of New York. According to the announcement, the relevant period during which investors purchased or acquired Varonis’s common shares spans from February 4, 2025, to October 28, 2025. Investors inclined to participate as lead plaintiff must submit their request by March 9, 2026.

The complaint contends that Varonis and its executives misled investors regarding the company’s revenue expectations and future growth prospects. They are accused of downplaying environmental risks including seasonal fluctuations and broader economic conditions that could affect performance. Instead of maintaining a steady trajectory for annual recurring revenue, Varonis allegedly failed to manage quarterly transition rates effectively, undermining investor trust and expectations.

Allegations Against Varonis Systems

The accusations further extend to a significant lack of transparency related to Varonis’s operational performance. The lawsuit emphasizes how Varonis presented overly optimistic reports regarding revenue growth and operational efficiency. Additionally, the firm faced scrutiny following a startling revelation on October 28, 2025, when Varonis disclosed third-quarter results that were far below what was initially projected. As a direct consequence of this uninspiring update, the stock price faced a nearly 49% decline.

CEO Yakov Faitelson addressed these shortfalls, attributing them to unexpected low renewal rates within their Federal business segment, as well as non-Federal on-premise subscriptions. These statements highlighted an alarming discrepancy between investor expectations and actual company performance.

The Role of a Lead Plaintiff

The Private Securities Litigation Reform Act of 1995 lays the foundational role for a lead plaintiff in class actions. This individual is typically characterized as having the most substantial financial stake in the case and the appropriate standing to represent the collective interest of all affected investors. This lead plaintiff is recognized as the driving force behind the litigation against Varonis Systems. Throughout this process, the lead plaintiff holds the authority to select legal representatives to represent the class, notably Robbins Geller Rudman & Dowd LLP in this case.

It's important to note that potential recovery for investors is not contingent upon their position as lead plaintiffs. All participating investors retain the right to share in any future recovery irrespective of their involvement level in the lawsuit.

About Robbins Geller Rudman & Dowd LLP

For over two decades, Robbins Geller has carved a reputation as a key player in securities litigation. This firm has successfully secured substantial monetary recoveries for investors, ranking first for four out of the last five years according to ISS Securities Class Action Services. In 2024, Robbins Geller reported over $2.5 billion recovered for investors, highlighting their robust position in this field.

The firm operates with a considerable team of 200 attorneys across 10 offices, advocating for shareholders and delivering resolutions to securities-related class actions. They have been involved in some of the largest recoveries in history, marking their influence and expertise in investor protection.

Conclusion

The time sensitivity surrounding the Varonis class action presents a pivotal moment for impacted investors to consider their options. Those interested in pursuing participation as a lead plaintiff can find further details here. Legal counsel for Robbins Geller, J.C. Sanchez, is available at 800-449-4900 or via email at [email protected] to answer any inquiries regarding this legal initiative. With deadlines approaching, investors should act swiftly to ensure their voices are heard during this important legal process.