Varonis Investors Face Deadline in Securities Fraud Lawsuit

Berger Montague advises investors of March 9 deadline to join class action against Varonis Systems, Inc.

Published on Feb. 25, 2026

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National plaintiffs' law firm Berger Montague PC has announced a class action lawsuit against Varonis Systems, Inc. (NASDAQ: VRNS) on behalf of investors who purchased or acquired Varonis securities during the period of February 4, 2025 through October 28, 2025. The lawsuit alleges that Varonis and its executives misled investors about the company's ability to convert its existing customer base, resulting in a significant decline in the stock price when the truth was revealed.

Why it matters

This case highlights the importance of transparency and accurate disclosure by public companies, as investors rely on this information to make informed decisions. The lawsuit alleges that Varonis' actions caused significant losses for shareholders, underscoring the need for strong investor protections and accountability for corporate misconduct.

The details

The lawsuit claims that Varonis and its senior executives misled investors about the company's ability to convert its existing customer base to its SaaS offering, despite knowing that Varonis was not positioned to successfully convince customers to make the switch. This allegedly resulted in significantly reduced annual recurring revenue (ARR) growth potential in the near-term. When the truth about customer renewals and conversions was revealed, Varonis' stock price plummeted by more than 48% in a single day.

  • The class period is from February 4, 2025 through October 28, 2025.
  • The deadline for investors to seek to be appointed as a lead plaintiff representative of the class is March 9, 2026.

The players

Varonis Systems, Inc.

A NASDAQ-listed technology company that provides data security and analytics software solutions.

Berger Montague PC

A national plaintiffs' law firm that has filed the class action lawsuit against Varonis on behalf of investors.

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What they’re saying

“Investors who purchased Varonis securities during the Class Period may, no later than March 9, 2026, seek to be appointed as a lead plaintiff representative of the class.”

— Andrew Abramowitz, Senior Counsel, Berger Montague (Newsfilecorp)

“Caitlin Adorni”

— Caitlin Adorni, Director of Portfolio & Institutional Client Monitoring Services, Berger Montague (Newsfilecorp)

What’s next

The judge in the case will decide on March 9, 2026 whether to allow investors to join the class action lawsuit against Varonis.

The takeaway

This lawsuit highlights the importance of accurate and transparent financial reporting by public companies, as investors rely on this information to make informed decisions. The significant stock price decline following the revelation of Varonis' alleged misconduct underscores the potential consequences for companies that mislead their shareholders.