Investigation Launched into Varonis Systems by Faruqi & Faruqi for Investor Claims
On January 17, 2026, the prominent securities law firm Faruqi & Faruqi, LLP announced an investigation into possible claims involving Varonis Systems, Inc. (NASDAQ: VRNS). This comes after Varonis experienced a substantial decline in its stock price, specifically a dramatic drop of approximately 48.67% on the day following its third-quarter fiscal results release on October 28, 2025. This investigation aims to assist investors who may have incurred losses due to alleged misleading statements and violations of federal securities laws by Varonis and its executives.
Faruqi & Faruqi, known for its expertise in financial law and litigation, has been a pivotal player in recovering funds for investors across numerous situations. The firm's scrutiny into Varonis Systems stems from claims that the company issued overly optimistic statements about its financial health while concealing critical facts about its capability to retain existing customers and effectively convert them to its Software as a Service (SaaS) offerings. This discrepancy led investors to purchase Varonis shares at inflated prices, only to suffer substantial losses when the company reported disappointing outcomes shortly thereafter.
The essence of the complaint is centered on Varonis' failure to adequately disclose its challenges in maintaining customer renewals and transitions to new service models. Following its October earnings report, Varonis not only missed projections for Annual Recurring Revenue (ARR) but also significantly downgraded its forecasts for the entire fiscal year 2025. This revelation surprised investors, particularly as it contrasted sharply with the company's prior optimistic outlook over two consecutive quarters.
The fallout from this announcement was immediate and harsh; after closing at $63.00 the day before the results were made public, Varonis saw its stock plunge to $32.34 on October 29, 2025. The drastic decline underscored the market's reaction to the revelation of previously undisclosed financial and operational challenges.
Investors who purchased Varonis shares between February 4, 2025, and October 28, 2025, and are seeking to understand their legal options are encouraged to contact James (Josh) Wilson, a partner at Faruqi & Faruqi. The firm is offering potential lead plaintiffs the chance to oversee the litigation, ensuring that their interests are adequately represented in court. Investors may either choose to take an active role as lead plaintiffs, representing the entire class of affected investors, or sit back as passive members without impacting their recovery rights.
The firm is not only advocating on behalf of those who lost money but is also soliciting information from any individuals possessing knowledge of Varonis’ practices, including whistleblowers, former employees, or any shareholders with pertinent insights. Such collaboration could significantly bolster the case against Varonis, potentially leading to a more substantial recovery for impacted investors.
For more information on how to join in on this action or if you require further insight about the situation, you can visit Faruqi & Faruqi or directly reach out to partner Josh Wilson at either 877-247-4292 or 212-983-9330 (Ext. 1310).
This investigation serves as a reminder of the importance of transparency and accountability in corporate governance and the ongoing efforts of law firms like Faruqi & Faruqi to safeguard investor interests against possible corporate malfeasance. As the deadline of March 9, 2026, approaches for those interested in stepping forward, stakeholders are urged to act swiftly in order to ensure their voices are heard in these proceedings.
Faruqi & Faruqi, known for its expertise in financial law and litigation, has been a pivotal player in recovering funds for investors across numerous situations. The firm's scrutiny into Varonis Systems stems from claims that the company issued overly optimistic statements about its financial health while concealing critical facts about its capability to retain existing customers and effectively convert them to its Software as a Service (SaaS) offerings. This discrepancy led investors to purchase Varonis shares at inflated prices, only to suffer substantial losses when the company reported disappointing outcomes shortly thereafter.
The essence of the complaint is centered on Varonis' failure to adequately disclose its challenges in maintaining customer renewals and transitions to new service models. Following its October earnings report, Varonis not only missed projections for Annual Recurring Revenue (ARR) but also significantly downgraded its forecasts for the entire fiscal year 2025. This revelation surprised investors, particularly as it contrasted sharply with the company's prior optimistic outlook over two consecutive quarters.
The fallout from this announcement was immediate and harsh; after closing at $63.00 the day before the results were made public, Varonis saw its stock plunge to $32.34 on October 29, 2025. The drastic decline underscored the market's reaction to the revelation of previously undisclosed financial and operational challenges.
Investors who purchased Varonis shares between February 4, 2025, and October 28, 2025, and are seeking to understand their legal options are encouraged to contact James (Josh) Wilson, a partner at Faruqi & Faruqi. The firm is offering potential lead plaintiffs the chance to oversee the litigation, ensuring that their interests are adequately represented in court. Investors may either choose to take an active role as lead plaintiffs, representing the entire class of affected investors, or sit back as passive members without impacting their recovery rights.
The firm is not only advocating on behalf of those who lost money but is also soliciting information from any individuals possessing knowledge of Varonis’ practices, including whistleblowers, former employees, or any shareholders with pertinent insights. Such collaboration could significantly bolster the case against Varonis, potentially leading to a more substantial recovery for impacted investors.
For more information on how to join in on this action or if you require further insight about the situation, you can visit Faruqi & Faruqi or directly reach out to partner Josh Wilson at either 877-247-4292 or 212-983-9330 (Ext. 1310).
This investigation serves as a reminder of the importance of transparency and accountability in corporate governance and the ongoing efforts of law firms like Faruqi & Faruqi to safeguard investor interests against possible corporate malfeasance. As the deadline of March 9, 2026, approaches for those interested in stepping forward, stakeholders are urged to act swiftly in order to ensure their voices are heard in these proceedings.
Topics Financial Services & Investing）
【About Using Articles】
You can freely use the title and article content by linking to the page where the article is posted.
※ Images cannot be used.
【About Links】
Links are free to use.