Gainey McKenna & Egleston Announces A Class Action Lawsuit Has Been Filed Against Varonis Systems, Inc. (VRNS)

NEW YORK, Jan. 08, 2026 (GLOBE NEWSWIRE) -- Gainey McKenna & Egleston announces that a securities class action lawsuit has been filed in the United States District Court for the Southern District of New York on behalf of all persons or entities who purchased or otherwise acquired Varonis Systems, Inc. (“Varonis” or the “Company”) (NASDAQ: VRNS) securities between February 4, 2025 and October 28, 2025.

The Complaint alleges that Defendants failed to disclose the true state of Varonis’ ability to convert its existing customer base; notably, that it was not truly equipped to convince existing users of the benefits of converting to the SaaS offering or otherwise maintain those customers on its platform, resulting in significantly reduced ARR growth potential in the near-term.

The Complaint alleges that on October 28, 2025, Varonis announced its financial results for the third quarter of fiscal 2025, disclosing a significant miss to ARR and reducing its projections for the full fiscal year 2025, despite previously uplifting guidance for the previous two consecutive quarters. The Complaint alleges that the Company attributed its results and lowered guidance on weaker than expected renewals and conversions in their federal and non-federal on-premises subscription business. The Complaint alleges that Varonis further resultantly announced the end of life of the self-hosted solution and a 5% headcount reduction.

As a result, the price of Varonis’ common stock declined dramatically, from a closing market price of $63.00 per share on October 28, 2025, Varonis’ stock price fell to $32.34 per share on October 29, 2025, a decline of about 48.67% in the span of just a single day.

Investors who purchased or otherwise acquired shares of Varonis should contact the Firm prior to the March 9, 2026 lead plaintiff motion deadline. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. If you wish to discuss your rights or interests regarding this class action, please contact Thomas J. McKenna, Esq. or Gregory M. Egleston, Esq. of Gainey McKenna & Egleston at (212) 983-1300, or via e-mail at tjmckenna@gme-law.com or gegleston@gme-law.com.

Please visit our website at http://www.gme-law.com for more information about the firm.

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