Varonis Systems, Inc. Faces Class Action Lawsuit Over Alleged Securities Violations

In a recent turn of events, Varonis Systems, Inc. (NASDAQ: VRNS) has found itself entangled in a class action lawsuit filed by The Gross Law Firm. This legal action is aimed at shareholders who purchased stock in the company during a specific timeframe, highlighting concerns regarding alleged violations of federal securities laws.

Background of the Case

The lawsuit pertains to shareholders who acquired shares of Varonis between February 4, 2025, and October 28, 2025. During this period, investors are claiming that Varonis provided misleading information regarding its business health, particularly concerning its transition to a Software as a Service (SaaS) model. Allegations assert that the company concealed critical information about its capabilities to retain existing customers and effectively promote its new offerings.

On October 28, 2025, Varonis publicly disclosed disappointing financial results for the third quarter of fiscal 2025. The company notably missed its Annual Recurring Revenue (ARR) projections and revised its growth expectations downward. This announcement triggered a significant drop in Varonis’s share price, which plummeted from $63.00 to $32.34 in just one day, amounting to nearly a 49% decrease.

Key Allegations

1. Misleading Statements: The complaint alleges that Varonis management made overly optimistic statements about the company's performance while failing to disclose the challenges it faced in retaining customers in its legacy business model.
2. Financial Misrepresentations: Investors contend that the company misrepresented its financial health by issuing inflated growth forecasts that were misaligned with actual performance metrics.
3. Impact on Share Price: The steep decline in stock value post-announcement is cited as a direct consequence of Varonis's failure to communicate the true state of its business to shareholders.

What Shareholders Should Do

The Gross Law Firm is urging shareholders affected by these alleged violations to come forward. They are encouraged to register with the firm by March 9, 2026, to explore their rights and potential recovery options. Importantly, to participate, individuals do not need to be appointed as lead plaintiffs. Instead, they can still benefit from legal proceedings simply by registering their information.

Next Steps for Investors

Once registered, affected shareholders will receive updates on the case’s progress through a monitoring software that the law firm provides. This ensures that investors stay informed about their stake in this significant legal battle.

Why Choose The Gross Law Firm?

The Gross Law Firm is renowned for advocating on behalf of investors facing losses due to deceptive practices or misleading corporate communications. Committed to holding companies accountable, the firm aims to promote ethical business conduct and seek recoveries for impacted shareholders.

Conclusion

As Varonis Systems, Inc. navigates through this challenging situation, shareholders are advised to act promptly to secure their interests. By participating in this class action, investors can potentially recover losses incurred as a result of the alleged securities law violations. For further information, shareholders can contact The Gross Law Firm through their official channels.

Contact Information
The Gross Law Firm
15 West 38th Street, 12th Floor
New York, NY 10018
Email: [email protected]
Phone: (646) 453-8903