Varonis Investors Seek Lead in Class Action Lawsuit

Robbins Geller Rudman & Dowd LLP announces opportunity for Varonis shareholders to lead lawsuit over alleged securities fraud.

Published on Feb. 23, 2026

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Investors who purchased Varonis Systems, Inc. (NASDAQ: VRNS) common stock between February 4, 2025 and October 28, 2025 have until March 9, 2026 to seek appointment as lead plaintiff in a class action lawsuit against the company and certain executives. The lawsuit alleges that Varonis created a false impression about its projected revenue and growth, while minimizing risks from seasonality and macroeconomic factors.

Why it matters

The lawsuit alleges that Varonis misled investors about the company's financial outlook, resulting in a nearly 49% drop in the stock price when the true financial situation was revealed. This case highlights the importance of transparency and accurate reporting by public companies to protect shareholder interests.

The details

The Varonis class action lawsuit charges the company and certain executives with violations of the Securities Exchange Act of 1934. It alleges that Varonis created a false impression that it had reliable information about its projected revenue and growth, while downplaying risks from seasonality and macroeconomic conditions. The complaint states that Varonis was ill-equipped to maintain its annual recurring revenue growth without a high rate of quarterly conversions, and that on October 28, 2025, the company released third quarter results that fell well short of previous projections, leading to a significant stock price decline.

  • The Class Period is from February 4, 2025 to October 28, 2025, inclusive.
  • Investors have until Monday, March 9, 2026 to seek appointment as lead plaintiff.

The players

Varonis Systems, Inc.

A provider of software products and services.

Yakov Faitelson

The CEO of Varonis Systems, Inc.

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What they’re saying

“Varonis' CEO, defendant Yakov Faitelson, allegedly elaborated on the reasons for the shortfall, attributing it to the 'final weeks of the quarter' where Varonis 'experienced lower renewals in the Federal vertical and in our non-Federal on-prem subscription business, which led to a shortfall relative to our expectations.'”

— Yakov Faitelson, CEO, Varonis Systems, Inc. (Complaint)

What’s next

The judge will decide on Monday, March 9, 2026 whether to allow an investor to serve as the lead plaintiff in the class action lawsuit.

The takeaway

This case highlights the importance of public companies providing accurate and transparent financial information to investors. The significant stock price drop following Varonis' earnings miss underscores the potential consequences of misleading investors, and the class action lawsuit aims to hold the company and its executives accountable.