Varonis(US:VRNS) TMX Newsfile·2026-01-19 15:36Core 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].