Commvault shares fell 31% on January 27, 2026, the day the data-protection company reported its fiscal third-quarter results. A securities class action now covers investors who bought during the months before that drop, and two law firms have issued notices about it.
The class period runs from April 29, 2025, through January 26, 2026. The Schall Law Firm, in a notice dated June 9, said the suit alleges violations of sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5. Investors have until July 17, 2026, to contact the firm. The class has not been certified, Schall noted, so until it is, investors are not represented by an attorney and can choose to take no action and remain absent class members.
What the complaint says
According to the complaint, Commvault gave the market glowing statements about growth in annual recurring revenue, or ARR, while knowing or recklessly disregarding that its growth guidance left out important variables, including the type of sale. Commvault earns revenue from subscriptions, including software-as-a-service (SaaS), and has called subscription ARR “the best indicator of the company’s growth.” SaaS ARR makes up about 38% of it.
Hagens Berman, which announced its own investigation on June 23, quoted statements Commvault made during the class period. The company said its “execution has never been better across the business,” promised it would “continue to see hyper-growth within [its] SaaS platform,” and said it had hit a SaaS target “two quarters earlier than planned.”
The firm says the company and its management knew, but did not disclose, how different kinds of sales would affect ARR. Sales, it alleges, were leaning toward lower-priced SaaS deals and discounting, which left a misleading impression that ARR would hold steady through fiscal 2026.
The January results
On January 27, Commvault reported a significant miss in net new ARR and cut its full-year ARR growth guidance. SaaS ARR growth slowed sharply, from 71% a year earlier to 40%. Several analysts downgraded their ratings and price targets, and some reportedly described the results as a “mess” and questioned whether the company could execute.
“We’re investigating the pending claims that Commvault intentionally misled investors about adverse impact on its growth narrative brought about by the change in type of sales revelations,” said Reed Kathrein, the Hagens Berman partner leading the investigation. The firm is also asking anyone with non-public knowledge of Commvault to come forward.
Commvault trades on Nasdaq as CVLT.
Sources
- Commvault Systems (CVLT) Securities Class Action Filed Amid Q3 2026's Apparent Inconsistencies With Prior Growth Narrative and $1.7B Market Cap Wipeout – HBSS
- CVLT Investors Have Opportunity to Lead Commvault Systems, Inc. Securities Fraud Lawsuit with the Schall Law Firm | lifestyle.cleanweb.co
