San Diego, CA, February 1, 2026
Investors in Varonis Systems, Inc. are confronting a significant class action lawsuit filed in New York, claiming the company misled them on its transition to a Software-as-a-Service model. The lawsuit alleges deceit regarding revenue growth during the transition, resulting in substantial investor losses after a steep drop in stock price. Interested investors from a specified class period can contact the law firm handling the case for participation details.
San Diego, CA – Investors in Varonis Systems, Inc. (NASDAQ: VRNS) are facing a crossroads as a significant class action lawsuit has been filed against the company. The allegations center on claims that Varonis misled investors regarding its transition from traditional on-premises subscriptions to a Software-as-a-Service (SaaS) model, resulting in substantial financial losses for those involved.
The class action lawsuit, known as Molchanov v. Varonis Systems, Inc., was filed on January 7, 2026, in the Southern District of New York. It accuses Varonis and select executives of violating the Securities Exchange Act of 1934. Investors who acquired Varonis common stock between February 4, 2025, and October 28, 2025, are now eligible to participate. Notably, the deadline to apply as the lead plaintiff is set for March 9, 2026.
Investors allege that Varonis provided misleading statements regarding its progress in transitioning to the SaaS model and its growth in annual recurring revenue (ARR). The company had previously communicated that it was on a favorable path towards SaaS integration, boasting significant revenue potential from its existing customer base. However, on October 28, 2025, the company’s report of disappointing renewal rates and a sluggish move from on-premises services resulted in a drastic 48% drop in stock price. This downturn equated to a staggering $3.8 billion loss in market capitalization.
For investors who faced significant losses during the specified class period, there is an avenue for recourse. Robbins Geller Rudman & Dowd LLP is inviting interested parties to reach out for potential participation as a lead plaintiff in the lawsuit. Contact options include a dedicated hotline and email address for streamlined communication.
As of January 31, 2026, Varonis Systems, Inc. stock is trading at $29.84, reflecting a decline of $0.73 (-2.39%) from the previous closing. During this trading day, shares fluctuated between $29.75 and $31.375, with opening figures reported at $30.61. Currently, the company maintains a market capitalization of around $6.44 billion, with an earnings per share (EPS) ratio of -1.02.
### Frequently Asked Questions (FAQ)
What is the class action lawsuit against Varonis Systems, Inc. about?
The class action lawsuit alleges that Varonis Systems, Inc. misled investors about its ability to transition from on-premises subscriptions to its Software-as-a-Service (SaaS) model, leading to significant financial losses for investors.
Who is eligible to participate in the class action lawsuit?
Investors who purchased or acquired Varonis common stock between February 4, 2025, and October 28, 2025, are eligible to participate in the class action lawsuit.
What is the deadline to seek appointment as lead plaintiff?
The deadline to seek appointment as lead plaintiff in the class action lawsuit is March 9, 2026.
How can I contact Robbins Geller Rudman & Dowd LLP?
Investors can contact Robbins Geller Rudman & Dowd LLP at 800/449-4900 or via email at [email protected].
What is the current stock price of Varonis Systems Inc.?
As of January 31, 2026, Varonis Systems Inc. (VRNS) stock is trading at $29.84, down $0.73 (-2.39%) from the previous close.
Where can I find more information about the class action lawsuit?
More information about the class action lawsuit and investor rights can be found on Robbins Geller Rudman & Dowd LLP’s website or by contacting the firm directly.
### Key Features of the Class Action Lawsuit
| Feature | Description |
|---|---|
| Class Period | February 4, 2025 – October 28, 2025 |
| Allegations | Misleading statements regarding SaaS transition and ARR growth |
| Stock Price Impact | 48% decline, approximately $3.8 billion market cap loss |
| Lead Plaintiff Deadline | March 9, 2026 |
| Contact Information | Robbins Geller Rudman & Dowd LLP, 800/449-4900, [email protected] |
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