The Gross Law Firm notifies investors that a class action has commenced in the United States District Court for the Southern District of New York on behalf of shareholders of Varonis Systems, Inc. who purchased common stock between February 4, 2025 and October 28, 2025.
According to the complaint, defendants provided overwhelmingly positive statements to investors while, at the same time, disseminating materially false and misleading statements and/or concealing material adverse facts concerning the true state of Varonis’ ability to convert its existing customer base; notably, that it was not truly equipped to convince existing users of the benefits of converting to the SaaS offering or otherwise maintain those customers on its platform, resulting in significantly reduced ARR growth potential in the near-term. On October 28, 2025, Varonis announced its financial results for the third quarter of fiscal 2025, disclosing a significant miss to ARR and reducing its projections for the full fiscal year 2025, despite previously uplifting guidance for the previous two consecutive quarters. The Company attributed its results and lowered guidance on weaker than expected renewals and conversions in their federal and non-federal on-premises subscription business. Varonis further resultantly announced the end of life of the self-hosted solution and a 5% headcount reduction. Following this news, Varonis’ common stock declined dramatically. From a closing market price of $63.00 per share on October 28, 2025, Varonis’ stock price fell to $32.34 per share on October 29, 2025, a decline of about 48.67% in the span of just a single day.
If you wish to choose counsel to represent you and the class, you must apply to be appointed lead plaintiff and be selected by the Court. The lead plaintiff will direct the litigation and participate in important decisions including whether to accept a settlement for the class in the action. The lead plaintiff will be selected from among applicants claiming the largest loss from investment in the respective securities during the class periods. Members of the class will be represented by the lead plaintiff and counsel chosen by the lead plaintiff. No class has yet been certified in the above action. Appointment as Lead Plaintiff is not required to partake in any recovery.
Shareholders have until March 9, 2026 to request that the court appoint them lead plaintiff.
To receive more information, please fill out the form.
