On January 15, 2026, Rosen Law Firm announced the filing of a federal securities class action on behalf of purchasers of Varonis Systems, Inc. common stock between February 4, 2025 and October 28, 2025. The complaint alleges that Varonis and certain executives made materially false and misleading statements regarding the Company’s ability to convert its on-premises customer base to a software-as-a-service offering and to sustain annualized recurring revenue (ARR) growth. Investors who acquired Varonis shares during the Class Period may seek lead plaintiff status by moving the Court no later than March 9, 2026, and may be entitled to compensation under a contingency fee arrangement without out-of-pocket costs.

According to Rosen Law Firm’s complaint, Varonis overstated its preparedness to migrate both federal and non-federal on-premises subscribers to its SaaS platform and to maintain renewal rates at projected levels. The suit contends that internal data showed weak customer buy-in for the new offering, leading to near-term ARR growth shortfalls. When Varonis reported third-quarter fiscal 2025 results on October 28, 2025, the Company revised full-year guidance downward, attributing weaker-than-expected renewals and conversions—factors not previously disclosed—and acknowledged the end-of-life for its self-hosted solution, triggering a sharp share price decline.

Also on January 15, 2026, Faruqi & Faruqi, LLP confirmed its investigation into potential claims against Varonis on behalf of investors who purchased stock during the same period. The firm highlights the October 28, 2025 announcement in which Varonis disclosed a marked ARR miss and a 5% workforce reduction to support its transition strategy. Faruqi & Faruqi’s notice reiterates the March 9, 2026 deadline for investors to seek lead plaintiff appointment and invites whistleblowers, former employees, and shareholders with information about Varonis’s sales practices or internal forecasts to come forward.

Investors affected by the alleged misstatements can join either class action without payment of upfront fees, seeking recovery for losses sustained when Varonis shares plunged following the disclosure of lower-than-anticipated ARR and weakened customer retention metrics. Prospective lead plaintiffs must file motions by March 9, 2026, and absent class members retain the right to participate in any settlement or judgment without active representation. Both Rosen Law Firm and Faruqi & Faruqi emphasize their track records—Rosen achieving over $438 million in recoveries in 2019 and Faruqi securing hundreds of millions since 1995—to underscore their experience in leading complex securities litigation.