Hagens Berman says the amended securities case follows a 31% stock drop after Commvault reported weaker-than-expected NNARR and a higher SaaS sales mix.
A newly filed securities class action against Commvault Systems, Inc. has widened the alleged class period to cover investors who purchased or acquired the company’s securities from January 28, 2025, through January 26, 2026. Hagens Berman said it is investigating the claims in the pending case, City of Fort Lauderdale Police and Firefighters' Retirement System v. Commvault Systems, Inc., et al., and noted a July 17, 2026 deadline for lead plaintiff motions. The complaint alleges Commvault overstated its competitive position and did not adequately disclose that rising competition forced the company to offer significant concessions on price and contract duration for software licenses. It further claims that as those concessions became unsustainable, SaaS (software-as-a-service, cloud-delivered software) made up a larger share of sales, weighing on margin and NNARR (net new annual recurring revenue, a subscription growth metric) because SaaS deals had shorter durations and lower ASPs (average selling prices). The alleged corrective disclosure came before markets opened on January 27, 2026, when Commvault announced third-quarter fiscal year 20261 results. The company reported NNARR in constant currency of $39 million, below analysts’ expectations of about $45 million. Chief Accounting Officer Danielle Abrahamsen said the share of SaaS deals rose to 70% in the quarter and that landing those customers at a 2 to 3x smaller ASP than software had a significant impact on ARR. Commvault shares fell $40.23, or about 31%, to close at $89.13 on January 27, 2026. Hagens Berman partner Reed Kathrein said the firm is continuing to examine whether Commvault misled investors about operational performance and financial reporting during the expanded class period. The firm also called for investors with substantial losses, as well as potential whistleblowers with non-public information, to come forward, noting that the SEC Whistleblower program (U.S. securities tipster rewards program) can pay up to 30% of a successful SEC recovery.