The legal action, City of Fort Lauderdale Police and Firefighters' Retirement System v. Commvault Systems, Inc., now covers a class period spanning January 28, 2025, through January 26, 2026. Hagens Berman, the firm leading the case, alleges that executives obscured the company’s weakening market position, which forced significant price concessions on software licenses.

Investors contend that the company’s pivot to SaaS—characterized by shorter contract durations and lower average selling prices—negatively impacted margins and net new annual recurring revenue (NNARR). The discrepancy became public on January 27, 2026, when Commvault reported NNARR of $39 million, missing analyst expectations of $45 million. Chief Accounting Officer Danielle Abrahamsen noted at the time that the SaaS deal mix had reached 70%, acknowledging that these contracts carry significantly smaller values than traditional software agreements. Following the disclosure, Commvault stock dropped 31%, closing at $89.13 per share.