Varonis Sued in SDNY Securities Class Action Over SaaS Conversion Claims

Overview

• The case, Molchanov v. Varonis Systems, Inc., No. 1:26-cv-00117, was filed in the Southern District of New York on behalf of purchasers of Varonis stock between February 4, 2025 and October 28, 2025.
• The complaint alleges the company and certain executives misled investors about converting on‑premises customers to its SaaS platform and about near‑term annual recurring revenue growth.
• On October 28, 2025, Varonis reported third‑quarter results that missed ARR expectations and reduced full‑year guidance, citing weaker renewals and conversions in federal and non‑federal on‑prem subscriptions.
• Following those disclosures, the company announced the end of life for its self‑hosted solution and a workforce reduction of about 5%.
• Varonis shares fell approximately 48.67% on October 29, 2025, and multiple plaintiff firms are soliciting class members as claims proceed under the Securities Exchange Act of 1934.