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Varonis Systems, Inc. Class Action Lawsuit Update

In a recent announcement, Robbins Geller Rudman & Dowd LLP has informed investors of Varonis Systems, Inc. that the deadline to join a class action lawsuit is rapidly approaching. The lawsuit stems from substantial financial losses incurred by shareholders between February 4, 2025, and October 28, 2025, as Varonis faced scrutiny regarding its reported revenue and growth prospects.

Key Allegations

The class action lawsuit, titled Molchanov v. Varonis Systems, Inc., alleges that the company and some of its top executives misrepresented crucial financial information related to Varonis's projections and growth capabilities. Specifically, it claims that Varonis made optimistic predictions contradicting reality. Investors believed that Varonis had an effective sales strategy and solid revenue forecasts, but in truth, the company was struggling to maintain its annual recurring revenue goals.

On October 28, 2025, Varonis's third-quarter results were released, revealing significant underperformance. The company drastically revised its full-year guidance downwards, causing the stock price to drop nearly 49%. CEO Yakov Faitelson stated that the disappointing results were due to lower renewals in the Federal sector and challenges within its non-Federal subscription business. This stark contrast to earlier optimistic projections has heightened concerns among investors and prompted legal actions.

Participation in the Class Action

Investors who suffered significant losses during the specified period are encouraged to seek appointment as lead plaintiffs in this lawsuit. The Private Securities Litigation Reform Act of 1995 allows any investor who purchased or acquired Varonis common stock during the class period to make this request. A lead plaintiff represents the interests of the entire class and can select their preferred law firm to manage the legal proceedings. Participation as a lead plaintiff can significantly influence the direction of the case.

Robbins Geller, a leading law firm in securities litigation, has been at the forefront of this case. The firm has a reputation for securing substantial settlements for aggrieved investors. With a team of over 200 lawyers, Robbins Geller has successfully handled some of the largest securities class action cases historically, including a record-breaking recovery for the Enron case.

Contact Information

Investors interested in joining the class action are urged to provide their information to Robbins Geller through their website or by contacting attorney J.C. Sanchez directly at 800-449-4900 or via email at [email protected]. The firm is providing support for investors navigating this complex legal landscape and emphasizes the urgency for affected shareholders to act before the March 9, 2026, deadline.

In summary, Varonis Systems, Inc. shareholders now face a pivotal moment regarding their investments. The opportunity to participate in a class action lawsuit could provide a path to potentially recover losses incurred during the tumultuous period of reported financial discrepancies. Investors are advised to act promptly and seek legal guidance from Robbins Geller to understand their rights and options regarding this case.