According to the lawsuit, defendants provided investors with material information concerning Varonis’ expected annual recurring revenue (“ARR”) for the 2025 fiscal year. Defendants’ statements included, among other things, confidence in Varonis’ ability to maintain ARR projections while converting both its federal and non-federal existing on-prem customers to the software-as-a-service (“SaaS”) alternative offering.
The lawsuit alleges that defendants provided these overwhelmingly positive statements to investors while, at the same time, disseminating materially false and misleading statements and/or concealing material adverse facts concerning the true state of Varonis’ ability to convert its existing customer base; notably, that it was not truly equipped to convince existing users of the benefits of converting to the SaaS offering or otherwise maintain these customers on its platform, resulting in significantly reduced ARR growth potential in the near-term. Such statements absent these material facts caused shareholders to purchase Varonis’ securities at artificially inflated prices.
No Class Has Been Certified. Until a class is certified, you are not represented by counsel unless you retain one. You may select counsel of your choice. You may also remain an absent class member and do nothing at this point. An investor’s ability to share in any potential future recovery is not dependent upon serving as lead plaintiff.
