Varonis(US:VRNS) Prnewswire·2026-02-12 15:10Core Viewpoint - Varonis Systems, Inc. is facing a federal securities class action lawsuit due to allegations of misleading statements regarding its ability to convert its customer base and maintain growth, leading to significant stock price declines [1] Group 1: Legal Action and Allegations - Faruqi & Faruqi, LLP is investigating potential claims against Varonis Systems and has set a deadline of March 9, 2026, for investors to seek the role of lead plaintiff in the class action [1] - The complaint alleges that Varonis and its executives violated federal securities laws by making false statements and failing to disclose material adverse facts about the company's performance and customer retention capabilities [1] - The lawsuit claims that misleading statements led to investors purchasing Varonis' securities at artificially inflated prices [1] Group 2: Financial Performance and Impact - On October 28, 2025, Varonis reported third-quarter financial results that significantly missed annual recurring revenue (ARR) expectations and lowered its full-year guidance, attributing this to weaker than expected renewals and conversions [1] - 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 [1] - 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 [1]