Investors of Varonis Systems, Inc. Encouraged to Join Class Action Following Significant Losses

Varonis Systems, Inc. Class Action Lawsuit Update

Robbins Geller Rudman & Dowd LLP has announced an important opportunity for investors of Varonis Systems, Inc. (NASDAQ: VRNS), encouraging those who have faced substantial financial losses to take action. Investors who bought or acquired stock between February 4, 2025, and October 28, 2025, are invited to seek appointment as lead plaintiff in a class action lawsuit now underway in the Southern District of New York. The lawsuit is formally titled Molchanov v. Varonis Systems, Inc. (No. 26-cv-00117).

Background of the Case

The Varonis class action lawsuit presents allegations against both the company and several of its executives, stemming from purported violations of the Securities Exchange Act of 1934. Central to the claims is the assertion that the company misrepresented its revenue projections and overall growth potential while downplaying risks associated with external factors like seasonality and economic fluctuations.

Inaccurate Growth Reports
The lawsuit claims that Varonis painted an overly optimistic picture of its financial health, suggesting it was on a continuous growth trajectory. However, the reality was starkly different. As outlined in the complaint, the company's reports regarding growth, cost-cutting efforts, and sales team performance were not reflective of the actual circumstances; the company was struggling to maintain a steady growth pattern without high conversion rates from quarterly assessments.

This came to a head when Varonis announced its third-quarter results on October 28, 2025, revealing performance that significantly lagged behind earlier forecasts. The corporate leadership, including CEO Yakov Faitelson, cited weaker-than-expected renewals in several sectors as the cause of this downturn. Following this revelation, Varonis's stock price plummeted nearly 49%, reflecting the market's reaction to the news.

Joining the Lawsuit

Investors who experienced substantial financial losses are given until March 9, 2026, to apply to become the lead plaintiff in the case. Under the Private Securities Litigation Reform Act of 1995, any investor who acquired Varonis common stock during the specified class period is eligible to lead the case. The lead plaintiff will act on behalf of all other class members, directing the litigation process and cooperating with the legal counsel of their choice.

It's crucial to note that potential financial recovery does not depend on being designated as the lead plaintiff.

About Robbins Geller Rudman & Dowd LLP

Robbins Geller Rudman & Dowd LLP stands as a preeminent law firm specializing in representing investors in cases involving securities fraud and shareholder litigation. Recognized for their prowess, the firm has secured substantial monetary relief for clients and been ranked highly in the industry. In the past year alone, Robbins Geller purportedly recovered more than $2.5 billion for investors through various securities-related class action cases, showcasing their commitment and expertise.

For more information or to join the class action, interested investors can visit RGRD Law or contact attorney J.C. Sanchez directly at 800-449-4900 or via email at [email protected].

As the case unfolds, many will be watching closely to see how Varonis responds to these serious allegations and what steps they will take to rectify the situation for their investors. Keep an eye on further developments as the legal proceedings progress and more information surfaces regarding the class action lawsuit's implications for affected shareholders.