Varonis(US:VRNS) Prnewswire·2026-01-21 11:00Core Viewpoint - Varonis Systems, Inc. is facing a class action lawsuit due to allegations of misleading investors regarding its revenue outlook and growth potential, leading to significant stock price decline after disappointing financial results were announced [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 and its executives violated the Securities Exchange Act of 1934 by creating a false impression of the company's financial health and growth prospects [3][4]. Group 2: Financial Performance - On October 28, 2025, Varonis reported third-quarter results that significantly missed prior projections, leading to a reduction in full-year guidance [4]. - The CEO attributed the shortfall to lower renewals in both Federal and non-Federal subscription businesses during the final weeks of the quarter, resulting in a nearly 49% drop in stock price following the announcement [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 significant recoveries in securities class action cases, including the largest recovery in history of $7.2 billion in the Enron case [6].