#United States #Class Action #Philadelphia #Berger Montague #Varonis Systems

Varonis Systems Faces Class Action Lawsuit

In a significant development for investors of Varonis Systems, Inc. (NASDAQ: VRNS), national plaintiffs' law firm, Berger Montague, has announced that a class action lawsuit has been initiated against the firm. This legal action pertains to Varonis investors who purchased securities during the period from February 4, 2025, to October 28, 2025. Given the circumstances surrounding the company's recent financial disclosures, affected investors now have a crucial deadline to consider.

Context Behind the Lawsuit

The impetus for this class action arises from alarming revelations made by Varonis on October 28, 2025, when the company disclosed its third-quarter financial results. At this announcement, investors were informed of notably lower than expected customer renewals and conversions in their on-premises subscription business, which had been previously concealed. As a result, Varonis missed its annual recurring revenue (ARR) targets and revised its fiscal guidance downward for the remainder of 2025. Notably, this announcement came after the company had raised its projections in the preceding two quarters, intensifying investor concern.

In conjunction with these financial disappointments, Varonis declared the discontinuation of its self-hosted solution and revealed a 5% reduction in workforce. The cascading effects of these revelations were swift and severe, leading to a dramatic decline in Varonis' stock price, plummeting from $63.00 per share to $32.34 per share in a single day—a staggering drop of over 48%.

What Affected Investors Should Know

The lawsuit targets investors who bought Varonis securities during this specified class period. To assert their rights, these investors must seek appointment as lead plaintiffs representative by March 9, 2026. Engaging with Berger Montague provides a channel for affected investors to understand their options and potential compensation pathways. This guidance is essential, given the complexity and implications of class action lawsuits.

For Varonis investors wishing to learn more about the lawsuit or needing legal representation, they can contact Berger Montague directly. The firm has allocated senior personnel, including Andrew Abramowitz and Caitlin Adorni, to address inquiries and provide necessary legal assistance.

About Berger Montague

Berger Montague is recognized as one of the leading law firms in the United States specializing in complex civil litigation, including class action suits and mass torts across federal and state courts. With over 55 years of experience, the firm boasts a significant track record, having secured more than $50 billion in recoveries for clients. Headquartered in Philadelphia, Pennsylvania, Berger Montague operates additional offices in regions including Chicago, Toronto, San Diego, and Washington D.C. among others.

The current state of affairs at Varonis represents a cautionary tale for investors, highlighting the vital nature of transparency and the potential ramifications of providing misleading financial guidance. As the legal proceedings unfold, it is crucial for investors to stay informed about their rights and options moving forward in this challenging fiscal climate.