Philadelphia, Pennsylvania--(Newsfile Corp. - January 14, 2026) - National plaintiffs' law firm Berger Montague PC announces that a class action lawsuit has been filed against Varonis Systems, Inc. (NASDAQ: VRNS) ("Varonis" or the "Company") on behalf of investors who purchased or otherwise acquired Varonis securities during the period of February 4, 2025 through October 28, 2025 (the "Class Period").
Investor Deadline: Investors who purchased Varonis securities during the Class Period may, no later than March 9, 2026, seek to be appointed as a lead plaintiff representative of the class. To learn your rights, CLICK HERE.
Headquartered in Miami, Fla., Varonis is a global security company offering software products to detect advanced security threats using AI-powered technologies.
The lawsuit alleges that Varonis and its senior executives misled investors as to the true state of the Company's ability to convert its existing customer base. Defendants raised investor expectations despite knowing that Varonis was not positioned to successfully convince existing users of the benefits of converting to the Company's SaaS offering, resulting in significantly reduced annual recurring revenue (ARR) growth potential in the near-term.
Investors learned the truth on October 28, 2025, when Varonis announced its third quarter 2025 financial results, disclosing a significant ARR miss and reducing its guidance for the full fiscal year 2025 - despite having raised its projections in the previous two consecutive quarters. The Company blamed weaker than expected renewals and conversions in their federal and non-federal on-premises subscription business. In addition, Varonis announced at the same time the end-of-life of its self-hosted solution, as well as a 5% headcount reduction.
Following this news, Varonis' common stock declined dramatically, from a closing price of $63.00 per share on October 28, 2025 to a close of $32.34 per share on October 29, 2025 - a decline of $30.66 per share, or more than 48%, in a single day.
If you are a Varonis investor and would like to learn more about this action, CLICK HERE or please contact Berger Montague: Andrew Abramowitz at aabramowitz@bergermontague.com or (215) 875-3015, or Caitlin Adorni at cadorni@bergermontague.com or (267)764-4865.
About Berger Montague
Berger Montague is one of the nation's preeminent law firms focusing on complex civil litigation, class actions, and mass torts in federal and state courts throughout the United States. With more than $2.4 billion in 2025 post-trial judgments alone, the Firm is a leader in the fields of complex litigation, antitrust, consumer protection, defective products, environmental law, employment law, securities, and whistleblower cases, among many other practice areas. For over 55 years, Berger Montague has played leading roles in precedent-setting cases and has recovered over $50 billion for its clients and the classes they have represented. Berger Montague is headquartered in Philadelphia and has offices in Chicago; Malvern, PA; Minneapolis; San Diego; San Francisco; Toronto, Canada; Washington, D.C., and Wilmington, DE.
For more information or to discuss your rights, please contact:
Andrew Abramowitz
Senior Counsel
Berger Montague
(215) 875-3015
aabramowitz@bergermontague.com
Caitlin Adorni
Director of Portfolio & Institutional Client Monitoring Services
Berger Montague
(267) 764-4865
cadorni@bergermontague.com
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/280352
Source: Berger Montague
