VRNS 6-DAY DEADLINE ALERT: Varonis Systems Facing Securities Class Action Over Alleged SaaS Transition Failure and Undisclosed Renewal Softness- Hagens Berman

"Our investigation focuses on the alleged contrast between Varonis's claims of being 'well on our way' to a SaaS future and the alleged reality of a struggling Federal renewal cycle," said Reed Kathrein, the Hagens Berman partner leading the firm's investigation of the alleged claims in the pending suit.

VRNS Securities Class Action Spotlight: The "On-Premises" Drag and Federal Miss

The pending litigation centers on whether Varonis violated the federal securities laws by failing to disclose:

• Misrepresented Conversion Potential: Varonis allegedly assured investors that many existing customers would be converting from on-prem to SaaS, saying "we are well on our way to becoming a SaaS company[,]" that it would "accelerate [its] SaaS transition and enable [us] to realize the benefit of SaaS" well in advance of its initial plan, that it has a "massive opportunity to increase the ARR from our existing customer base[,]" and that gross customer retention and renewal rate are "all very strong." In reality, the lawsuit alleges the company was ill-equipped to convince its on-premises users to migrate at the speed represented.
• The Federal Vertical and On-Premises Collapse: On October 28, 2025, Varonis revealed that weaker renewals in its Federal vertical and non-Federal on-prem subscription business led to a performance miss, which the lawsuit alleges directly contradicted prior high confidence statements of Varonis's growth.
• Significant Guidance Reduction: Following the Q3 miss, the company slashed its Q4 revenue and full-year ARR guidance.
• 48% Single-Day Plummet: On this news, VRNS shares crashed from $63.00 to $32.34, representing a loss of nearly half the company's shareholder value in 24 hours.

Next Steps: Contact Partner Reed Kathrein Today

Hagens Berman is a top-tier plaintiff litigation firm with a successful track record for leading complex securities fraud class actions.

Mr. Kathrein is actively advising investors who purchased VRNS shares during the Class Period (February 4, 2025 – October 28, 2025) and suffered substantial losses.

The Lead Plaintiff Deadline is March 9, 2026.