Veritone Inc. faces a securities class action after admitting it overstated revenue by as much as $2.5 million due to improper accounting.
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Veritone faces class action after admitting $2.5M revenue accounting error
Veritone Inc. faces a securities class action after admitting it overstated revenue by as much as $2.5 million due to improper accounting.
"Veritone and its management intentionally misled investors about its financial performance using now-admitted improper accounting," Reed Kathrein, the Hagens Berman partner leading the investigation, said.
The lawsuit covers investors who bought Veritone shares between Oct. 14, 2025 and April 14, 2026. On March 26, 2026, the company disclosed a preliminary Q4 revenue range of $18.1 million to $30 million, citing delays in finalizing accounting for certain transactions. The stock fell 29.5% the next day to $1.84. On April 1, Veritone said it would delay its annual filing due to barter revenue accounting issues and flagged a potential $1.5 million to $2.5 million reduction in previously reported Q3 2025 revenue — equal to 5.2% to 8.6% of the $29.1 million total. Shares fell another 9.1%. On April 14, the company admitted its Q3 2025 financial statements "should no longer be relied upon" due to errors including misclassified revenue and costs in transactions where Veritone acted as an agent under ASC 606. The stock dropped 8.3% the next day.
The admissions erased more than $200 million in market value across the three disclosure events. Investors have until July 20, 2026, to seek lead plaintiff status. The SEC whistleblower program may also draw additional scrutiny, with potential rewards of up to 30% of any recovery.
The lawsuit puts Veritone's accounting controls under a legal microscope, raising the risk of further restatements and regulatory penalties. Investors will watch for any SEC investigation and the company's next quarterly filing for signs of broader internal control failures.
This article is for informational purposes only and does not constitute investment advice.
[1] Veritone, Inc. (VERI) Securities Class Action Filed After Admitting Improper Revenue Accounting – Hagens Berman[2] ROSEN, SKILLED INVESTOR COUNSEL, Encourages Veritone, Inc. Investors to Secure Counsel Before ...[3] Deadline Approaching: Veritone, Inc. (VERI) Shareholders Who Lost Money Urged To Contact Law Offices of Howard G. Smith[4] Veritone, Inc. (VERI) Securities Class Action Filed After Admitting Improper Revenue Accounting – Hagens Berman - GlobeNewswire[5] VERI SHAREHOLDER ALERT: Bronstein, Gewirtz and Grossman, LLC Anno - The National Law Review
