The lawsuit, Imbert v. Commvault Systems, Inc., claims that executives artificially bolstered investor confidence by suggesting that annualized recurring revenue (ARR) would remain stable throughout fiscal year 2026. According to the complaint, the company failed to disclose that its ARR growth was highly sensitive to specific sales channels, a factor allegedly ignored when the firm issued its financial guidance.

The discrepancy surfaced on January 27, 2026, when Commvault reported net new ARR of $39 million, falling short of the $45 million forecast previously provided to the market. Following the announcement, the company’s stock price dropped by more than 31%. Robbins Geller Rudman & Dowd LLP, the firm representing the plaintiffs, is now inviting investors who suffered substantial losses to participate in the litigation process.