Varonis(US:VRNS) Globenewswire·2026-02-27 18:20Core Viewpoint - A securities class action lawsuit has been filed against Varonis Systems, Inc. and its executives, with a lead plaintiff deadline approaching on March 9, 2026, focusing on allegations of concealed issues in the company's transition to a Software-as-a-Service (SaaS) model [1][4]. Group 1: Allegations and Lawsuit Details - The lawsuit claims that Varonis executives misrepresented the company's ability to transition to a SaaS model while failing to disclose significant renewal challenges in its Federal vertical and legacy on-premises business [2][5]. - Following a disclosure on October 28, 2025, regarding difficulties in converting existing customers to the SaaS model, Varonis reported a 63.9% year-over-year decline in term license revenue and reduced its Annual Recurring Revenue (ARR) outlook, leading to a 48% drop in stock price, equating to a loss of approximately $3.8 billion in market value [3][9]. Group 2: Financial Impact and Stock Performance - The stock price of Varonis fell from $63.00 to $32.34 in a single day, reflecting a nearly 50% loss in shareholder value following the negative disclosures [9]. - The company significantly reduced its Q4 revenue and full-year ARR guidance after the disappointing Q3 performance, which contradicted previous optimistic statements about growth [9]. Group 3: Investor Actions and Support - Hagens Berman is actively encouraging investors who suffered losses during the class period from February 4, 2025, to October 28, 2025, to come forward and submit their claims [4][7]. - The firm is also advising potential whistleblowers with non-public information about Varonis to consider participating in the investigation or the SEC Whistleblower program, which offers rewards for original information leading to successful recoveries [10].