Varonis(US:VRNS) Globenewswire·2026-01-15 21:19Core 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 prospects during the Class Period from February 4, 2025, to October 28, 2025 [2][6]. Allegation Details - The complaint alleges that Varonis failed to disclose that it was not adequately positioned to sustain its Annual Recurring Revenue (ARR) growth without maintaining a high rate of quarterly conversions [6]. - The lawsuit claims that positive statements made by the company regarding its business were misleading and lacked a reasonable basis [6]. Financial Performance - On October 28, 2025, Varonis reported third-quarter financial results that missed consensus estimates, including a significant 63.9% year-over-year decline in term license subscription revenues [6]. - The company reduced its full-year ARR guidance due to underperformance in its on-prem subscription business, which was described as a "drag on total company ARR growth" by the CEO [6]. Stock Price Impact - Following the release of disappointing financial results, Varonis's stock price fell by $30.66, or 48.7%, closing at $32.34 per share on October 29, 2025, resulting in significant losses for investors [6].