Varonis Sued in Securities Class Action Over ARR and SaaS Conversion Disclosures

Plaintiffs allege upbeat statements hid trouble converting on‑prem customers to SaaS, culminating in an ARR shortfall revealed on Oct. 28, 2025.

Overview

Investors who bought Varonis common stock between Feb. 4, 2025 and Oct. 28, 2025 are included in the putative class.
Glancy Prongay & Murray, Kessler Topaz, The Gross Law Firm, and DJS Law Group are inviting shareholders to seek lead‑plaintiff status by March 9, 2026.
On Oct. 28, 2025, Varonis missed third‑quarter revenue expectations and cut full‑year ARR guidance due to weakness in its on‑prem subscription business.
CEO Yakov Faitelson said the on‑premises subscription business was a drag on total company ARR growth, and the stock fell 48.7% to close at $32.34 on Oct. 29, 2025.
Law firm notices cite weaker renewals and conversions and report that Varonis moved to end its self‑hosted product and reduce headcount by about 5%.