Investors Warned of Class Action Lawsuit Against Varonis Systems, Inc. Amidst Revenue Decline

Investor Alert: Class Action Lawsuit Filed Against Varonis Systems, Inc.

On February 19, 2026, Pomerantz LLP announced a significant legal development regarding Varonis Systems, Inc., a company listed on NASDAQ under the ticker VRNS. This announcement comes as the firm informs investors with losses related to their Varonis securities of an impending class action lawsuit.

The focus of the lawsuit is directed at the actions of Varonis, alongside some of its key executives and board members, concerned with allegations of securities fraud and other illicit business practices. Investors who have incurred losses during a specified class period are strongly encouraged to reach out to Pomerantz LLP for more information regarding their potential involvement in the lawsuit. According to the firm, interested parties should contact Danielle Peyton either via phone at 646-581-9980 or email at [email protected]. Inquiries should ideally include personal details such as mailing address, phone number, and the number of shares acquired by the investor.

Important Deadlines

Investors are urged to act swiftly, as the deadline to request appointment as Lead Plaintiff in this class action lawsuit is set for March 9, 2026. A full version of the complaint, along with additional details, can be accessed on the official Pomerantz website.

Background on Varonis Systems, Inc.

On October 28, 2025, Varonis disclosed its financial results for the third quarter which notably failed to meet market expectations. The report surfaced alarming details, highlighting a staggering 63.9% decrease in term license subscription revenues compared to the previous year. Additionally, the company announced a revision of its annual ARR guidance, acknowledging that their on-premises subscription business was underperforming. In an investor earnings call that followed, Yakov Faitelson, who serves as the Co-Founder, Chairman, and CEO of Varonis, described the issues surrounding the on-premises subscriptions as a significant drag on the company's overall growth in annual recurring revenue (ARR).

The management cited various problems contributing to lower renewal rates in their on-premises subscriptions, including flaws in the sales process. This disappointing news had an immediate adverse impact on Varonis's stock, which plummeted by $30.66 per share—or nearly 49%—closing at $32.34 on October 29, 2025. This dramatic decline has left many investors feeling vulnerable and seeking recourse for their financial losses.

About Pomerantz LLP

Founded by Abraham L. Pomerantz, regarded as the pioneer in class action law, Pomerantz LLP is a well-respected law firm specializing in corporate, securities, and antitrust litigation. Operating offices in key cities around the world—including New York, Chicago, Los Angeles, London, Paris, and Tel Aviv—the firm has cultivated a robust reputation over its 85-year history. It has played an instrumental role in achieving numerous multimillion-dollar settlements on behalf of investors wronged by securities fraud, breaches of fiduciary duty, and other forms of corporate misconduct.

Now, as Varonis investors face uncertainty in the wake of the company’s performance, Pomerantz LLP stands ready to fight for their rights. Potential plaintiffs are encouraged to visit the firm’s website to better understand their legal options moving forward.

For any further updates on this situation, including legal deadlines and proceedings, investors should make it a priority to stay engaged and informed through Pomerantz's resources.