Group 1 - A class action lawsuit has been filed against Varonis Systems, Inc. on behalf of investors who acquired Varonis securities between February 4, 2025, and October 28, 2025 [1][3] - The lawsuit alleges that Varonis and its executives misled investors regarding the company's ability to convert its existing customer base, leading to reduced annual recurring revenue (ARR) growth potential [3][4] - On October 28, 2025, Varonis disclosed a significant ARR miss and reduced its guidance for the full fiscal year 2025, attributing this to weaker than expected renewals and conversions in its subscription business [4][5] Group 2 - Following the announcement of disappointing financial results, Varonis' stock price fell from $63.00 per share to $32.34 per share, a decline of over 48% in one day [5] - Varonis is a global security company that offers software products utilizing AI-powered technologies to detect advanced security threats [2]

Core Viewpoint - A securities class action lawsuit has been filed against Varonis Systems, Inc. and certain executives, representing investors who acquired Varonis common stock between February 4, 2025, and October 28, 2025, following a significant drop in share price due to disappointing financial results and guidance [1][3]. Company Performance - Varonis reported weaker than expected renewals and conversions from its on-premises subscription business to its software-as-a-service (SaaS) model, leading to a significant downward revision of its annual recurring revenue (ARR) [2][5]. - The company's Q3 2025 financial results missed both its own and consensus estimates, prompting a reduction in Q4 revenue and 2025 ARR guidance [5]. Market Reaction - Following the announcement of disappointing results, Varonis shares plummeted by approximately 48%, resulting in a loss of about $3.8 billion in market capitalization the next day [6]. Allegations of Misrepresentation - The lawsuit alleges that Varonis misled investors by making overly positive statements about its ability to convert on-prem customers to SaaS, while failing to disclose critical information regarding its actual conversion capabilities [4][6]. - The complaint claims that Varonis was not adequately prepared to transition its existing on-prem users to the SaaS model, which adversely affected its ARR growth potential [4].

Core Viewpoint - A securities class action lawsuit has been filed against Varonis Systems, Inc. and certain executives, representing investors who acquired Varonis common stock between February 4, 2025, and October 28, 2025, following a significant drop in share price due to disappointing financial results and guidance [1][2]. Company Performance - Varonis reported weaker than expected renewals and conversions from its on-premises subscription business to its software-as-a-service (SaaS) model, leading to a downward revision of its annual recurring revenue (ARR) [2][5]. - The company's Q3 2025 financial results missed both its own and consensus estimates, prompting a reduction in Q4 revenue and 2025 ARR guidance [5]. Market Reaction - Following the announcement of disappointing results, Varonis shares plummeted over 48%, resulting in a loss of approximately $3.8 billion in market capitalization the next day [2][6]. Allegations of Misrepresentation - The lawsuit alleges that Varonis misled investors by making overly positive statements about its transition to SaaS and the potential for ARR growth, while failing to disclose the challenges in converting existing on-prem customers [4][6]. - The complaint claims that Varonis was not adequately prepared to facilitate the transition from on-prem to SaaS, contradicting its assertions of a "massive opportunity" for ARR growth [4].

Core Viewpoint - A class action lawsuit has been filed against Varonis Systems, Inc. for allegedly making materially false and misleading statements regarding its business operations and growth potential during the specified Class Period from February 4, 2025, to October 28, 2025 [1][5]. Group 1: Lawsuit Details - The lawsuit claims that Varonis was unable to maintain its Annual Recurring Revenue (ARR) projections while transitioning existing on-prem customers to a software-as-a-service (SaaS) model [5]. - It is alleged that Varonis lacked the capability to persuade existing users to convert to the SaaS offering, leading to a significant reduction in near-term ARR growth potential [5]. - The lawsuit asserts that the positive statements made by Varonis regarding its business and prospects were materially misleading and lacked a reasonable basis, resulting in investor damages when the truth was revealed [5]. Group 2: Participation Information - Investors who purchased Varonis common stock during the Class Period may be entitled to compensation without any out-of-pocket fees through a contingency fee arrangement [2]. - Interested parties can join the class action by visiting the provided link or contacting the law firm directly for more information [3][6]. - A lead plaintiff must file a motion with the court by March 9, 2026, to represent other class members in the litigation [1][3].

Core Viewpoint - A securities class action lawsuit has been filed against Varonis Systems, Inc. for alleged material misstatements and omissions during the class period from February 4, 2025, to October 28, 2025, impacting investors who purchased or acquired Varonis common stock [1][6]. Group 1: Lawsuit Details - The lawsuit claims that Varonis was not adequately prepared to sustain its Annual Recurring Revenue (ARR) growth without maintaining a high rate of quarterly conversions [2]. - Defendants are accused of making misleading statements regarding the company's business operations and future prospects, which lacked a reasonable basis [2]. Group 2: Investor Information - Affected investors can seek to be appointed as lead plaintiffs by March 9, 2026, through Kessler Topaz Meltzer & Check, LLP or other counsel [3]. - The lead plaintiff will represent the interests of all class members in the litigation process [3]. Group 3: Law Firm Background - Kessler Topaz Meltzer & Check, LLP is a prominent U.S. law firm specializing in securities-fraud class actions and investor protection, representing both individual and institutional investors [5]. - The firm has achieved significant recoveries in securities litigation and has received multiple accolades for its work in this field [5].

Core Viewpoint - Faruqi & Faruqi, LLP is investigating potential claims against Varonis Systems, Inc. due to allegations of misleading statements and failure to disclose material facts regarding the company's performance and customer retention capabilities [2][5]. Group 1: Legal Investigation and Claims - The law firm is encouraging investors who suffered losses in Varonis between February 4, 2025, and October 28, 2025, to discuss their legal options [1]. - A federal securities class action has been filed against Varonis, with a deadline of March 9, 2026, for investors to seek the role of lead plaintiff [2]. - The complaint alleges that Varonis and its executives violated federal securities laws by making false statements and failing to disclose the company's inability to convert its existing customer base to its SaaS offering [5]. Group 2: Financial Performance and Stock Impact - On October 28, 2025, Varonis reported a significant miss in Annual Recurring Revenue (ARR) and lowered its full-year guidance, attributing this to weaker-than-expected renewals and conversions in its subscription business [6]. - Following the announcement, Varonis' stock price plummeted from $63.00 per share to $32.34 per share, marking a decline of approximately 48.67% in just one day [7]. - The company also announced the end of life for its self-hosted solution and a 5% reduction in headcount as part of its restructuring efforts [6].

Core Viewpoint - Rosen Law Firm has announced a class action lawsuit on behalf of purchasers of Varonis Systems, Inc. securities, indicating potential legal issues related to misleading statements made by the company during the specified Class Period [1]. Group 1: Class Action Details - The class action lawsuit pertains to Varonis Systems, Inc. common stock purchased between February 4, 2025, and October 28, 2025 [1]. - Investors who purchased Varonis securities during the Class Period may be entitled to compensation without any out-of-pocket fees through a contingency fee arrangement [2]. - Interested parties can join the class action by visiting the provided link or contacting the law firm directly [3][6]. Group 2: Legal Representation - Rosen Law Firm emphasizes the importance of selecting qualified legal counsel with a successful track record in securities class actions [4]. - The firm has achieved significant settlements in the past, including the largest securities class action settlement against a Chinese company at the time and has consistently ranked highly in securities class action settlements [4]. Group 3: Case Allegations - The lawsuit alleges that Varonis made materially false and misleading statements regarding its ability to maintain Annual Recurring Revenue (ARR) projections while transitioning customers to a software-as-a-service (SaaS) model [5]. - It is claimed that Varonis was not adequately prepared to convince existing users of the benefits of the SaaS offering, leading to reduced ARR growth potential [5]. - The lawsuit asserts that the misleading statements resulted in investor damages when the true situation was revealed [5].

Core Viewpoint - Rosen Law Firm has announced a class action lawsuit on behalf of purchasers of Varonis Systems, Inc. securities, alleging that the company made materially false and misleading statements regarding its business operations and growth potential during the specified Class Period from February 4, 2025, to October 28, 2025 [1][5]. Group 1: Lawsuit Details - The lawsuit claims that Varonis was unable to maintain its Annual Recurring Revenue (ARR) projections while transitioning existing customers to its software-as-a-service (SaaS) model [5]. - It is alleged that Varonis lacked the capability to convince existing users of the benefits of the SaaS offering, leading to a significant reduction in near-term ARR growth potential [5]. - The lawsuit asserts that the positive statements made by Varonis regarding its business and prospects were materially misleading and lacked a reasonable basis, resulting in investor damages when the true situation was revealed [5]. Group 2: Participation Information - Investors who purchased Varonis securities during the Class Period may be entitled to compensation without any out-of-pocket fees through a contingency fee arrangement [2]. - To join the class action, interested parties can visit the provided link or contact the law firm directly for more information [3][6]. - A lead plaintiff must file a motion with the Court by March 9, 2026, to represent other class members in the litigation [1][3]. Group 3: Rosen Law Firm Credentials - Rosen Law Firm has a strong track record in securities class actions, having achieved the largest securities class action settlement against a Chinese company at the time [4]. - The firm was ranked No. 1 by ISS Securities Class Action Services for the number of settlements in 2017 and has consistently ranked in the top 4 since 2013, recovering hundreds of millions of dollars for investors [4]. - In 2019, the firm secured over $438 million for investors, showcasing its effectiveness in representing investor rights [4].

Company Overview - Varonis Systems, Inc. (NASDAQ:VRNS) provides software products and services that protect both unstructured and structured data across IaaS, SaaS, and on-premises environments, serving various industries including healthcare, technology, financial services, manufacturing, and education [3]. Investment Outlook - Citi analyst Fatima Boolani reiterated a Hold rating for Varonis Systems while lowering the price target from $40 to $37, indicating a potential upside of 5.96% from current levels [1]. - The firm has initiated a "downside 90-day catalyst watch" on Varonis due to intensifying competitive pressures in the data security market, which may pose risks to the company's upcoming earnings report [1]. Market Trends - The cybersecurity sector is experiencing increasing demand driven by artificial intelligence, with expectations of improving deal sizes and broad optimism around short-term cybersecurity spending [2]. - Cantor Fitzgerald anticipates that identity, cloud, and AI security will be the fastest-growing areas within the security and infrastructure software sector [2].

Core Viewpoint - A class action lawsuit has been filed against Varonis Systems, Inc. on behalf of investors who acquired Varonis securities during the specified class period, highlighting concerns over the company's financial disclosures and performance [1][3]. Company Summary - Varonis Systems, Inc. is a global security company based in Miami, Florida, specializing in software products that utilize AI technologies to detect advanced security threats [2]. - The company reported a significant miss in annual recurring revenue (ARR) and reduced its guidance for the full fiscal year 2025, attributing this to weaker than expected customer renewals and conversions in its subscription business [3]. Financial Impact - Following the announcement of disappointing financial results on October 28, 2025, Varonis' stock price plummeted from $63.00 to $32.34 per share, marking a decline of $30.66 per share, or over 48%, in just one day [4].