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Varonis Systems, Inc. Class Action Lawsuit Overview

On January 8, 2026, Robbins LLP announced a class action lawsuit concerning Varonis Systems, Inc. (NASDAQ: VRNS). This lawsuit has been initiated on behalf of all investors who purchased or acquired Varonis securities within the timeframe extending from February 5, 2025, to October 28, 2025. Varonis is well-known as a global security company specializing in software that supports the discovery and classification of critical data, managing vulnerabilities, and detecting sophisticated threats utilizing advanced AI technologies.

The Core Allegations

The lawsuit stems from allegations that Varonis Systems misled investors regarding its business outlook and financial performance. According to the filed complaint, there were assertions from the company that created a misleading image of their revenue predictions and potential growth, while downplaying the risks posed by seasonal trends and wider economic fluctuations. The lawsuit indicates that Varonis presented overly optimistic growth reports and exaggerated the effectiveness of its sales approach to persuade existing customers to transition to their Software as a Service (SaaS) model. However, it has come to light that the company was not adequately prepared to sustain its growth in annual recurring revenue without achieving an exceedingly high quarterly conversion rate.

The turmoil culminated on October 28, 2025, when Varonis disclosed third-quarter results that fell short of previous expectations and reduced their full-year guidance. This disclosure triggered a significant drop in the stock price, plummeting from $63.00 per share to $32.34 per share within a mere day – a staggering decline of approximately 48.67%.

Participation in the Class Action

As a stockholder, you may be eligible to participate in the class action against Varonis Systems, Inc. For those interested in serving as lead plaintiff, you must file the necessary documents by March 9, 2026. The lead plaintiff operates as a representative for other class members and plays a crucial role in steering the litigation process. However, it is essential to note that taking no action does not disqualify you from recovery; you can choose to remain an absent member of the class.

Robbins LLP operates on a contingency fee basis, meaning that shareholders will incur no fees unless a recovery is obtained.

Overview of Robbins LLP

Established in 2002, Robbins LLP is a recognized leader in litigation focused on shareholder rights. Their dedicated team strives to assist shareholders in reclaiming losses, enhancing corporate governance, and holding executives accountable for misconduct.

Stay Informed

If you wish to receive notifications regarding any settlements in the class action against Varonis Systems, Inc., or wish to get alerts on corporate executives involved in wrongdoing, consider signing up for Stock Watch, a service offered by Robbins LLP.

Legal Disclaimer

Note that past results do not guarantee the same outcome in similar cases, and this article is not intended as attorney advertising. If you have any inquiries or require assistance, you can reach out via their website or contact attorney Aaron Dumas, Jr. at (800) 350-6003.