Varonis(US:VRNS) Businesswire·2026-01-09 18:50Core Viewpoint - A securities fraud class action lawsuit has been filed against Varonis Systems, Inc. due to significant financial underperformance and misleading statements made by the company during the class period from February 4, 2025, to October 28, 2025 [1][3]. Financial Performance - On October 28, 2025, Varonis reported third quarter 2025 financial results, revealing a revenue miss against consensus estimates, with a notable 63.9% year-over-year decline in term license subscription revenues [2]. - The company reduced its full-year Annual Recurring Revenues (ARR) guidance, attributing this to the underperformance of its on-prem subscription business [2]. - Following the earnings announcement, Varonis's stock price plummeted by $30.66, or 48.7%, closing at $32.34 per share on October 29, 2025, resulting in significant losses for investors [2]. Lawsuit Details - The class action lawsuit alleges that Varonis made materially false and misleading statements and failed to disclose adverse facts regarding its business and operational prospects [3]. - Specifically, the lawsuit claims that Varonis was not adequately prepared to sustain its ARR growth without maintaining a high rate of quarterly conversions, rendering the company's positive statements misleading [3].