Varonis Hit With Securities Class Action in SDNY as Lead‑Plaintiff Race Begins

The complaint claims executives misled investors about the company’s ability to convert on‑prem customers to SaaS, inflating near‑term ARR expectations.

Overview

The lawsuit, captioned Molchanov v. Varonis Systems, Inc. (No. 1:26-cv-00117), has been filed in the U.S. District Court for the Southern District of New York.
The putative class covers purchasers of Varonis common stock from February 4, 2025 through October 28, 2025.
On October 28, 2025, Varonis reported a major ARR shortfall, cut full‑year guidance, announced the end of its self‑hosted product, and disclosed a 5% workforce reduction.
Following the disclosure, Varonis shares fell about 48.67%, dropping from $63.00 on October 28, 2025 to $32.34 on October 29, 2025.
Multiple firms, including Levi & Korsinsky, Robbins Geller, Holzer & Holzer, Gainey McKenna & Egleston, Faruqi & Faruqi, and Bragar Eagel & Squire, are seeking investors to move for lead‑plaintiff status by March 9, 2026.