VRNS Investor Alert: Hagens Berman Scrutinizing Varonis Systems (VRNS) Amid Claims of Alleged SaaS Transition Fraud in Securities Class Action

SAN FRANCISCO, Feb. 2, 2026

The firm urges VRNS investors who suffered substantial losses to submit your losses now.  VRNS investors may also visit Hagens Berman's VRNS Case page to view our latest investigation summary: www.hbsslaw.com/cases/varonis.

"We are investigating whether Varonis painted a false picture of a seamless SaaS transition while the reality was a significant drag from its legacy business," said Reed Kathrein, the Hagens Berman partner leading the firm's investigation of the alleged claims in the pending suit.

The Varonis Systems (VRNS) Securities Class Action: Illusion of a Seamless SaaS Transition Amid Renewal Softness and ARR Erosion

The pending litigation alleges that Varonis and its executives issued misleading statements that concealed systemic risks in their core growth strategy:

• 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.