Veritone, Inc. (VERI) Securities Class Action

The litigation is focused on the propriety of Veritone’s repeated assurances that it prepared its financial statements in conformity with applicable accounting rules.

Specifically, the complaint alleges that Veritone did not disclose to investors that it did not accurately record and classify certain revenues and costs, and that the company overstated revenues, assets (including accounts receivable), royalties and other comprehensive income.

Investors learned the truth through a series of partial disclosures beginning on March 26, 2026. That day, Veritone provided an unexpectedly broad range of preliminary Q4 2025 revenues, explaining that “it is currently finalizing its accounting determination of certain revenue transactions[.]” This news drove the price of Veritone shares down over 29% the next day.

Then, on April 1, 2026, the company announced that it would not timely file its annual report “due to delays in finalizing the Company’s accounting determination of certain barter revenue transactions[.]” The company also raised the possibility of having to reduce previously recorded revenues and, of additional concern, that revisions or restatements of previously issued financial statements for quarters ended June 30 and September 30, 2025 could be required. This news drove the price of Veritone shares down over 9% that day.

On April 14, 2026, the company revealed that it “determined that the Company’s previously issued unaudited condensed consolidated financial statements as of and for the three and nine months ended September 30, 2025 should no longer be relied upon” due to misapplied accounting resulting in significant revenue overstatements and net loss understatements. The divergence from accounting rules included “an error in the valuation of consideration received associated with an on-premise software sold and delivered to a customer” and “misclassification of revenue and costs in transactions in which the Company acted as an agent[.]” This news drove the price of Veritone shares down over 8% the next day.

FREQUENTLY ASKED QUESTIONS ABOUT THE CASE

What is the VERI investigation about?

Our investigation is focused on whether Veritone and its management intentionally misled investors about its financial performance using now-admitted improper accounting.

WHAT SHOULD I DO?

I worked at VERI. What should I do?

If you were an employee of VERI, you may have valuable information that could be relevant to the investigation. Hagens Berman is one of the nation’s top whistleblower law firms, and has successfully represented many individuals who come forward with information regarding corporate malfeasance. Under the new SEC Whistleblower program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, contact Reed Kathrein at 844-916-0895 or [email protected].

There are multiple law firms participating, do I need to contact all of them?

No, you do not need to contact all participating law firms. Generally, class-action investigations and lawsuits are consolidated into a single case to streamline the legal process, and attorneys from only a few law firms are selected to serve in a leadership role on the consolidated case. Hagens Berman has a proven track record of being appointed to leadership roles in complex, multidistrict litigation regarding investor fraud and other consumer rights issues, and your claim will be handled by attorneys who have helped secure approximately $325 billion in class-action settlements on behalf of individuals who have suffered due to corporate malfeasance and the wrongdoing of other powerful institutions.

AM I ELIGIBLE?

What is the threshold amount to be eligible? What are “substantial” losses?

The threshold amount and the definition of "substantial" losses may vary depending on a number of factors specific to the case, including the size of the company, market cap, shares outstanding and who holds them and the damages alleged by the fraud. In general, to be eligible to participate in a class-action lawsuit, you must be able to demonstrate that you suffered financial losses as a result of the alleged wrongdoing and that your losses meet the criteria set by the court or law firm. Fill out the form and submit your losses.

CAN I PARTICIPATE?

Am I affected? What do I need to do to participate?

If you were an investor in VERI, you may be affected and eligible to participate in the case. To determine your eligibility and potential involvement, fill out the form and submit your losses.

Can any VERI investor participate?

In most class-action investigations and cases, any investor who meets the eligibility criteria, including purchasing the shares during the relevant period, can participate, regardless of the size of their investment. Fill out the form to find out your rights.

I bought on a non-U.S. Exchange. Can I participate?

No. This investigation only covers shares bought on a U.S. exchange, i.e. NASDAQ or NYSE. Fill out the form to find out your rights.

Am I included if I still hold my shares, or do I need to sell to participate?

Participation is based on purchasing shares during the relevant period, rather than your current holdings. Accordingly, you do not need to sell to participate. Fill out the form to find out your rights.