Veritone Faces Class Action Lawsuit Over Revenue Accounting Errors

The legal action, led by the firm Hagens Berman, stems from a string of disclosures that began on March 26, 2026. On that date, Veritone announced it was finalizing its accounting determination for specific revenue transactions, a revelation that caused the company’s share price to drop by more than 29%. Subsequent announcements regarding delays in filing its annual report and the potential for restating financial results for mid-2025 further eroded investor confidence, triggering additional double-digit percentage declines in stock value.

By April 14, 2026, Veritone confirmed that its unaudited financial statements for the first three quarters of 2025 should no longer be relied upon. The company identified significant errors, including the misvaluation of consideration received for software sales and the improper classification of transactions where it acted as an agent. Reed Kathrein, a partner at Hagens Berman, stated that the firm's investigation is focused on whether Veritone intentionally misled shareholders regarding its financial performance. Investors seeking to participate in the class action or provide information regarding the company's accounting practices have until July 20, 2026, to file as lead plaintiffs.