Varonis(US:VRNS) TMX Newsfile·2026-01-26 00:49Core Viewpoint - Varonis Systems, Inc. is facing a federal securities class action due to allegations of misleading statements and failure to disclose material facts regarding its business performance, particularly its ability to convert existing customers to its SaaS offering [5][6]. Group 1: Legal Investigation and Class Action - Faruqi & Faruqi, LLP is investigating potential claims against Varonis and reminds investors of the March 9, 2026 deadline to seek the role of lead plaintiff in the class action [2]. - The complaint alleges that Varonis and its executives made false statements while concealing adverse facts about the company's ability to maintain its customer base, leading to inflated stock prices [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 due to weaker than expected renewals and conversions [6]. - Following the announcement, Varonis' stock price plummeted from $63.00 to $32.34 per share, a decline of approximately 48.67% in one day [7]. Group 3: Company Background - Faruqi & Faruqi, LLP is a national securities law firm that has recovered hundreds of millions of dollars for investors since its establishment in 1995 [4].