Key Takeaways:
Veritone Inc. lost more than a third of its market value across two trading sessions after admitting its financial statements contained material errors, triggering a securities class action lawsuit that investors have until July 20 to join.
"Veritone misclassified certain revenues and costs, leading to overstated accounts receivable and other income," the Schall Law Firm said in a complaint filed in federal court. The firm is seeking lead plaintiff status for investors who purchased shares between Oct. 14, 2025 and April 14, 2026.
The AI software company on March 26 disclosed preliminary fourth-quarter revenue of $18.1 million to $30 million, blaming an unresolved accounting treatment under ASC 606 for the unusually wide range. Shares plunged 29.5% the next day to $1.84. Two weeks later, Veritone said its previously issued financial statements for the three and nine months ended Sept. 30, 2025 "should no longer be relied upon" due to errors that materially overstated revenue. The stock fell another 8.3% on April 15 to $2.09.
At least three law firms — Schall, Faruqi & Faruqi, and Hagens Berman — have filed or announced investigations into whether Veritone and its executives violated federal securities laws. The complaints allege the company maintained deficient internal controls over accounting and financial reporting, forcing a restatement. Veritone shares closed at $2.12 on May 29, down 95% from their 2021 peak above $45.
The lawsuit seeks class certification for all investors who bought Veritone securities during the class period. A lead plaintiff must be appointed by the court before the case proceeds. Veritone has not yet responded to the allegations in court filings.
This article is for informational purposes only and does not constitute investment advice.
