Law firm reminds Varonis Systems investors of securities class action suit

Faruki & Faruqi, LLP Securities Litigation Partner James (Josh) Wilson is reaching out to individuals who have sustained losses exceeding $100,000 in Varonis to discuss potential legal recourse. If you have suffered financial losses in Varonis between February 4, 2025, and October 28, 2025, you can contact Faruqi & Faruqi partner Josh Wilson directly to explore your legal options.

Faruqi & Faruqi, LLP, a reputable national securities law firm, is currently investigating potential claims against Varonis Systems, Inc. (Varonis). Investors have until March 9, 2026, to step forward and seek the lead plaintiff role in a federal securities class action lawsuit filed against the Company. Faruqi & Faruqi, LLP has a substantial presence with offices in various states, including New York, Pennsylvania, California, and Georgia. The firm has a proven track record of securing significant losses for investors since its establishment in 1995.

The complaint alleges that Varonis and its executives ran afoul of federal securities laws by issuing overly optimistic statements to investors while simultaneously circulating materially false and misleading information or concealing essential adverse facts regarding Varonis’ capability to convert its existing customer base. Specifically, it was noted that the Company was ill-equipped to persuade current users to transition to the Software-as-a-Service (SaaS) offering or retain these customers on its platform, resulting in a notable decrease in Annual Recurring Revenue (ARR) growth prospects in the short term. These statements, oblivious to the critical facts, led shareholders to purchase Varonis securities at inflated prices.

On October 28, 2025, Varonis disclosed its financial results for the third quarter of fiscal 2025, revealing a substantial ARR miss and downgrading its projections for the full fiscal year 2025, despite raising guidance for the preceding two quarters. This outcome and revised guidance were attributed to lower-than-expected renewals and conversions in their federal and non-federal on-premises subscription business. Varonis also announced the discontinuation of the self-hosted solution and a 5% reduction in staff as a result.

Shortly after this announcement, Varonis’ stock took a significant hit. The company’s common stock price plummeted from $63.00 per share on October 28, 2025, to $32.34 per share on October 29, 2025, a staggering decline of about 48.67% in just one day.

The lead plaintiff appointed by the court is the investor with the greatest financial stake in the relief sought by the class, who is competent and representative of other class members and who oversees the lawsuit on behalf of the class. Any potential class member can request that the court designate them as lead plaintiff through their chosen legal counsel or can decide to remain an absent class member. Whether or not one chooses to serve as lead plaintiff has no bearing on their ability to partake in any recovery.

Faruqi & Faruqi, LLP also encourages individuals possessing information regarding Varonis’ activities to come forward, including whistleblowers, former employees, shareholders, and others who may have relevant details. To find out more about the Varonis Systems class action, you can visit their website or contact Faruqi & Faruqi partner Josh Wilson directly.