Securities Lawsuits Target Multiple Public Firms
A wave of securities class-action lawsuits is underway, with law firms urging investors in companies like Smart Digital Group, Aquestive Therapeutics, and Varonis Systems to join claims. The actions highlight growing legal risks for public companies amid volatile markets and increased scrutiny.
The lawsuit against Smart Digital Group alleges the company was part of a market manipulation scheme. This scheme reportedly involved misinformation spread on social media by individuals posing as financial experts to artificially inflate the stock's price. Following these allegations, the company's stock plummeted 86.4% on September 26, 2025, and the SEC suspended trading of the stock. Varonis Systems is accused of misleading investors about its ability to transition existing customers to its software-as-a-service (SaaS) model. The company had presented a positive outlook on its revenue growth, but later announced a significant miss in its annual recurring revenue and lowered its financial guidance for 2025. This news caused Varonis' stock to drop by over 48% in a single day, from $63.00 to $32.34 per share on October 29, 2025. Aquestive Therapeutics is under investigation after the FDA found deficiencies in the company's New Drug Application for Anaphylm, a treatment for severe allergic reactions. The company's announcement on January 9, 2026, which did not specify the nature of the deficiencies, led to a 37% drop in its stock price. This is not the first time Aquestive has faced legal challenges related to its drug applications; a previous class-action lawsuit concerning the epilepsy treatment Libervant was dismissed in March 2023. The lead plaintiff deadline for investors to join the class action against Varonis Systems is March 9, 2026, while the deadline for the Smart Digital Group lawsuit is March 16, 2026. These lawsuits are part of a broader trend of increased legal action against publicly traded companies.
