Veritone faces securities class action with July 20 lead plaintiff deadline

Veritone Inc. faces a securities class action lawsuit after the company admitted its financial statements contained improper revenue accounting and should no longer be relied upon.

The lawsuit, filed by the Schall Law Firm in the U.S. District Court for the Central District of California, seeks to represent investors who acquired Veritone securities between Oct. 14, 2025 and April 14, 2026. Investors have until July 20 to petition the court to serve as lead plaintiff.

"Veritone misclassified certain revenues and costs," the complaint alleges. "Due to these misclassifications, the Company overstated revenues, accounts receivable, and other income."

According to the complaint, Veritone failed to maintain adequate internal controls over accounting and financial reporting. The company will be forced to restate financial statements impacted by the misclassifications, the filing said. The claims assert violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5.

Veritone, an artificial intelligence software company based in Los Angeles, had previously filed financial statements that it now says should not be relied upon. The company has not yet disclosed the full scope of the accounting errors or the expected impact on prior-period results. The restatement will cover financial statements impacted by the revenue and cost misclassifications.

The class has not yet been certified. Until certification occurs, investors are not represented by an attorney. Shareholders who choose to take no action can remain absent class members. The Schall Law Firm, which specializes in securities class actions and shareholder rights litigation, represents investors globally. The firm is led by Brian Schall, based in Los Angeles.

The lawsuit adds to mounting legal pressure on Veritone, which has faced scrutiny over its revenue recognition practices. The company's next catalyst will be the restatement of its financial statements, which will reveal the magnitude of the accounting misstatements. Investors will also watch for any regulatory action by the Securities and Exchange Commission.

This article is for informational purposes only and does not constitute investment advice.