SHAREHOLDER NOTICE: Faruqi & Faruqi, LLP Investigates Claims on Behalf of Investors of Varonis Systems

StockNews.AI • 23 hours

BearishShort TermLegalN/A

High Materiality8/10

Information

Faruqi & Faruqi, LLP Securities Litigation Partner James (Josh) Wilson Encourages Investors Who Suff...

AI Summary

Faruqi & Faruqi is investigating Varonis Systems for potential securities fraud as the company missed earnings targets and failed to adequately disclose risks around its SaaS transition. Following the negative financial results, Varonis's stock plummeted almost 49%, raising concerns about investor confidence and the firm's future prospects.

Trading Thesis

Investors should approach VRNS cautiously due to ongoing litigation risks and poor performance.

Market-Moving

Varonis's stock dropped nearly 49% in one day due to disappointing results.
The ongoing lawsuit could lead to further stock volatility.
Investigations into false statements may erode investor confidence.
Pressures on ARR growth potential raised by missed earnings report.
March 2026 deadline could catalyze a sell-off in VRNS shares.

Key Facts

Varonis's stock fell from $63.00 to $32.34 per share in one day.
The company missed its ARR growth targets in Q3 of 2025.
Faruqi & Faruqi is investigating potential investor claims against Varonis.
The lawsuit claims Varonis misled investors about SaaS conversion capabilities.
Investors have until March 9, 2026, to assert claims in the lawsuit.

Companies Mentioned

Varonis Systems, Inc. (VRNS): Under investigation for potential securities fraud, negatively impacting investor confidence.

Legal

This falls under legal developments as Varonis Systems faces a federal securities litigation that could significantly influence both investor sentiment and stock performance.

FAQ

Why Bearish?

The significant drop in stock price and ongoing litigation initiate high selling pressure, reminiscent of past cases where companies faced similar lawsuits and saw sustained declines (like Theranos).

How important is it?

The news directly affects Varonis's market perception and stock price due to legal challenges and financial performance.

Why Short Term?

Immediate price volatility is expected due to the ongoing legal situation, but long-term effects depend on resolution outcomes.

Related Companies

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Faruqi & Faruqi Investigates Potential Claims Against Varonis Systems, Inc. (NASDAQ: VRNS)

Faruqi & Faruqi, LLP, a reputable national securities law firm, is actively investigating claims on behalf of investors who suffered losses due to their investments in Varonis Systems, Inc. (NASDAQ: VRNS). This news comes as the firm reminds investors of the pressing deadline—March 9, 2026—to apply for the role of lead plaintiff in a federal securities class action lawsuit filed against the company.

Background on the Investigation

The investigation by Faruqi & Faruqi is focused on allegations that Varonis and its executives violated federal securities laws. The complaint claims that the Company provided misleading information to investors while failing to disclose critical facts about its operations. Specifically, it is alleged that Varonis did not adequately communicate its challenges in converting existing customers to its Software as a Service (SaaS) offerings.

Faruqi & Faruqi is a nationally recognized securities law firm founded in 1995.
The firm has successfully recovered hundreds of millions of dollars for investors throughout its history.
The upcoming deadline for potential lead plaintiffs is March 9, 2026.

Key Events Leading to the Investigation

On October 28, 2025, Varonis released its third-quarter financial results for fiscal 2025, which indicated a significant miss on Annual Recurring Revenue (ARR) projections. The company also updated its full year guidance downward. This disappointing announcement followed two consecutive quarters of increased guidance and raised considerable concerns among investors.

Key highlights from the announcement include:

Reduced projections attributed to weaker-than-expected renewals in both federal and non-federal sectors.
Announcement of the end-of-life for its self-hosted solution.
A 5% reduction in headcount aimed at reducing operational costs.

Following the announcement, Varonis' stock price plummeted from a closing price of $63.00 per share to $32.34 per share on October 29, 2025, representing a decrease of approximately 48.67% in just one day.

Steps for Affected Investors

Investors who acquired Varonis' securities between February 4, 2025, and June 28, 2025, are encouraged to reach out to Faruqi & Faruqi. The firm is seeking individuals who may want to take on the position of lead plaintiff in the class action against Varonis. Interested parties can connect with the legal team directly:

Call Faruqi & Faruqi partner James (Josh) Wilson at 877-247-4292 or 212-983-9330 (Ext. 1310).
Visit the firm’s dedicated page for the Varonis Systems class action at www.faruqilaw.com/VRNS.

The court will appoint a lead plaintiff who has the largest financial interest and is suitable to represent the class action members. Participation as a lead plaintiff may provide the investor with significant influence over the litigation process.

Call to Action

Faruqi & Faruqi encourages anyone with information regarding Varonis's actions—including whistleblowers and former employees—to contact the firm to contribute to the ongoing investigation. Your insights could be invaluable to seeking justice for affected shareholders.

For ongoing updates and further information on the situation, investors can follow Faruqi & Faruqi on LinkedIn, X, or Facebook. Please note that all communications will be handled confidentially.