Varonis Systems, Inc. (VRNS) Investors with Substantial Losses Have Opportunity to Lead Class Action Lawsuit - RGRD Law

Core Viewpoint - The Varonis Systems, Inc. is facing a class action lawsuit alleging violations of the Securities Exchange Act of 1934, with claims that the company misrepresented its revenue outlook and growth potential, leading to significant stock price declines following disappointing financial results [1][3][4]. Group 1: Lawsuit Details - The class action lawsuit is titled Molchanov v. Varonis Systems, Inc., and it involves purchasers of Varonis common stock between February 4, 2025, and October 28, 2025 [1]. - Investors have until March 9, 2026, to seek appointment as lead plaintiff in the lawsuit [1]. - The lawsuit alleges that Varonis and its executives created a false impression of the company's financial health, particularly regarding its annual recurring revenue growth and the effectiveness of its sales strategies [3]. Group 2: Financial Performance - On October 28, 2025, Varonis reported third-quarter results that significantly missed prior projections, leading to a lowered full-year guidance [4]. - The CEO, Yakov Faitelson, attributed the shortfall to lower renewals in both the Federal vertical and the non-Federal on-prem subscription business during the final weeks of the quarter [4]. - Following the announcement of these results, Varonis's stock price fell nearly 49% [4]. Group 3: Legal Process - The Private Securities Litigation Reform Act of 1995 allows any investor who purchased Varonis common stock during the class period to seek appointment as lead plaintiff [5]. - The lead plaintiff is typically the investor with the greatest financial interest in the case and acts on behalf of all class members [5]. - Investors can choose their own legal representation for the class action lawsuit, and participation as lead plaintiff does not affect the ability to share in any potential recovery [5]. Group 4: Law Firm Background - Robbins Geller Rudman & Dowd LLP is a leading law firm specializing in securities fraud and shareholder litigation, having secured over $2.5 billion for investors in 2024 alone [6]. - The firm has been ranked 1 in the ISS Securities Class Action Services rankings for four out of the last five years [6]. - Robbins Geller is recognized for obtaining some of the largest securities class action recoveries in history, including a record $7.2 billion in the Enron case [6].