The legal action, spearheaded by Hagens Berman, centers on allegations that Veritone misled shareholders by reporting financial results that failed to comply with standard accounting rules. According to the complaint, management overstated assets, including accounts receivable, while failing to accurately classify costs and revenue streams. The investigation seeks to determine if these misstatements were intentional attempts to bolster the appearance of financial performance.
The company’s fiscal transparency began to crumble on March 26, 2026, when Veritone disclosed uncertainty regarding its fourth-quarter revenue, triggering a 29% drop in share price. Subsequent announcements in April confirmed that the firm could not timely file its annual report and would likely need to restate financial results from previous quarters in 2025. By April 14, Veritone formally acknowledged that its unaudited statements for the first nine months of 2025 should no longer be relied upon, citing misclassified agent transactions and valuation errors related to software sales.
Reed Kathrein, the Hagens Berman partner leading the case, stated that the firm is investigating whether leadership intentionally deceived investors. With a lead plaintiff deadline set for July 20, 2026, attorneys are currently soliciting information from shareholders and potential whistleblowers who may possess non-public details regarding the company’s accounting practices.
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