#USA #New York #Securities Fraud #Varonis Systems #VRNS

Varonis Systems, Inc. Faces Class Action Lawsuit

A significant legal development has arisen for shareholders of Varonis Systems, Inc. (NASDAQ: VRNS) as they find themselves embroiled in a class action lawsuit claiming securities fraud. This lawsuit has been initiated by The Gross Law Firm, which is actively reaching out to shareholders who bought shares during the relevant period: February 4, 2025, to October 28, 2025.

Allegations of Misconduct

The core of the allegations suggests that executives at Varonis made misleading statements to investors while concealing crucial information about the company's performance. Specifically, it is asserted that Varonis failed to effectively transition its customer base to its SaaS platform. This misalignment prompted an underwhelming annual recurring revenue (ARR) growth forecast, undermining investor confidence.

The situation escalated dramatically on October 28, 2025, when Varonis disclosed dismal third-quarter financial results and lowered its projections for the fiscal year 2025. This announcement revealed significant issues surrounding customer renewals and conversions, particularly within their federal and non-federal on-premises subscriptions. In light of these developments, Varonis confirmed the termination of its self-hosted solution and announced a 5% reduction in workforce, further alarming investors. The fallout was immediate, as Varonis's stock plummeted from $63.00 per share to $32.34 in just one day—an astonishing 48.67% decline.

Next Steps for Shareholders

The Gross Law Firm has encouraged all shareholders who purchased VRNS shares during the identified class period to register for participation in the lawsuit. Importantly, shareholders are not required to take on the role of lead plaintiff to be eligible for any potential recovery. A registration deadline has been set for March 9, 2026. By registering, shareholders will gain access to a portfolio monitoring software providing updates on the case throughout its progression.

This initiative is part of The Gross Law Firm's larger mission to safeguard investors' rights against fraudulent practices. The firm has a track record of advocating for those who have been misled by corporate malpractice and hopes to ensure that Varonis is held accountable for their alleged actions.

Why Choose The Gross Law Firm?

The Gross Law Firm has established itself as a reputable name in the domain of class action litigation. Their commitment to addressing instances of fraud and misrepresentation aims to foster a culture of accountability in corporate practices, assuring investors that their interests are effectively represented.

As this case develops, shareholders are encouraged to stay informed and take the necessary steps to protect their investments. Notably, there is no financial obligation attached to joining this lawsuit.

If you are a shareholder of Varonis Systems, Inc., do not delay in contacting The Gross Law Firm to discuss your rights and potential actions. For more information or to register, please follow the links provided in the notice from the firm.