VRNS INVESTOR ALERT: Robbins Geller Rudman & Dowd LLP Announces that Varonis Systems, Inc. Investors with Substantial Losses Have Opportunity to Lead Class Action Lawsuit

Core Viewpoint - The Varonis Systems, Inc. is facing a class action lawsuit alleging that the company and its executives misled investors regarding its revenue outlook and growth potential, leading to significant financial losses for shareholders [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 from February 4, 2025, to October 28, 2025, with a deadline of March 9, 2026, for seeking lead plaintiff status [1]. - The lawsuit claims that Varonis provided a false impression of its financial health, downplaying risks associated with seasonality and macroeconomic factors [3]. - On October 28, 2025, Varonis reported third-quarter results that significantly missed projections, leading to a nearly 49% drop in stock price [4]. Group 2: Allegations Against Varonis - The complaint alleges that Varonis's optimistic growth reports and cost-cutting measures were misleading, as the company struggled to maintain its annual recurring revenue growth without high quarterly conversion rates [3]. - CEO Yakov Faitelson attributed the shortfall in performance to lower renewals in both Federal and non-Federal subscription businesses during the final weeks of the quarter [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 lead plaintiff status, which involves directing the lawsuit on behalf of all class members [5]. - The lead plaintiff can choose a law firm to represent the class, 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 prominent 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 recognized for its success in obtaining significant monetary relief for investors, including the largest recovery in history of $7.2 billion in the Enron case [6].