Varonis(US:VRNS) Prnewswire·2026-02-20 17:41Core Viewpoint - Hagens Berman is investigating Varonis Systems, Inc. (NASDAQ: VRNS) over allegations of failing to disclose significant issues related to its transition to a Software-as-a-Service (SaaS) model, which has led to a substantial decline in revenue and stock value [1]. Group 1: Allegations and Lawsuit Details - The lawsuit claims that Varonis executives concealed renewal softness in its Federal vertical and legacy on-premises business while promoting a successful transition to SaaS [1]. - Following a disclosure on October 28, 2025, Varonis reported a 63.9% year-over-year decline in term license revenue and a reduced Annual Recurring Revenue (ARR) outlook, resulting in a 48% drop in stock price, equating to a loss of approximately $3.8 billion in market value [1]. - The investigation focuses on whether Varonis violated federal securities laws by failing to disclose the significant decline in renewals and the challenges in converting existing customers to the SaaS model [1]. Group 2: Financial Impact and Stock Performance - On the news of the revenue decline, Varonis shares plummeted from $63.00 to $32.34 in a single day, representing a nearly 50% loss in shareholder value [1]. - The company significantly reduced its Q4 revenue and full-year ARR guidance following the Q3 performance miss, indicating a serious impact on its financial outlook [1]. - The lawsuit alleges that Varonis misrepresented its ability to convert on-premises customers to SaaS, claiming strong retention and renewal rates, which were contradicted by the actual performance [1]. Group 3: Next Steps for Investors - Hagens Berman is advising investors who purchased VRNS shares during the class period from February 4, 2025, to October 28, 2025, and experienced substantial losses to contact the firm [1]. - The lead plaintiff deadline for the pending lawsuit is set for March 9, 2026, urging affected investors to take action [1].