Glancy Prongay Wolke & Rotter LLP (“GPWR”), announces that it has filed a class action lawsuit in the United States District Court for the Central District of California, captioned Elwan v. Veritone, Inc., et al., Case No. 8:26-cv-01275, on behalf of persons and entities that purchased or otherwise acquired Veritone, Inc. (“Veritone” or the “Company”) (NASDAQ: VERI) securities between October 14, 2025 and April 14, 2026, inclusive (the “Class Period”). Plaintiff pursues claims under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 (the “Exchange Act”).
Investors are hereby notified that they have 60 days from the date of this notice to move the Court to serve as lead plaintiff in this action.
IF YOU SUFFERED A LOSS ON YOUR VERITONE INVESTMENTS, CLICK HERE TO INQUIRE ABOUT POTENTIALLY PURSUING CLAIMS TO RECOVER YOUR LOSS UNDER THE FEDERAL SECURITIES LAWS.
What Happened?
On March 26, 2026, after the market closed, Veritone issued a press release, partially announcing fourth quarter 2025 financial results, including revenue of in the range of $18.1 million to $30.0 million, and that the “Company has provided a range of expected revenue for the three and twelve months ended December 31, 2025 because it is currently finalizing its accounting determination of certain revenue transactions under ASC 606.”
On this news, Veritone’s stock price fell $0.77, or 29.5%, to close at $1.84 per share on March 27, 2026, on unusually heavy trading volume.
On April 1, 2026, before the market opened, the Company filed a Form NT 10-K with the SEC, disclosing the Company “was unable, without unreasonable effort or expense, to file its Annual Report on Form 10-K for the fiscal year ended December 31, 2025 . . . within the prescribed time period primarily due to delays in finalizing the Company’s accounting determination of certain barter revenue transactions under ASC 606.” The filing further stated the “ongoing accounting analysis” may “result in out-of-period adjustments, the largest of which may result in a reduction in revenue for the quarter ended September 30, 2025 of $1.5 million to $2.5 million, or 5.2% to 8.6%, of the total $29.1 million of revenue previously reported for such quarter.” The Company disclosed it was evaluating “whether the previously issued financial statements for the quarters ended June 30, 2025 and September 30, 2025 may need to be revised or restated.”
On this news, Veritone’s stock price fell $0.18, or 9.14%, to close at $1.79 per share on April 1, 2026, on unusually heavy trading volume.
On April 14, 2026, after the market closed, Veritone filed a Form 8-K with the SEC which disclosed the Company had “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 errors which resulted in, among other things, a significant overstatement of revenue and understatement of net loss. The filing disclosed a number of errors, including “an error in the valuation of consideration received associated with an on-premise software sold and delivered to a customer” as well as the “misclassification of revenue and costs in transactions in which the Company acted as an agent under ASC 606, Revenue from Contracts with Customers.”
On this news, Veritone’s stock price fell $0.19, or 8.3%, to close at $2.09 per share on April 15, 2026, on unusually heavy trading volume.
What Is The Lawsuit About?
The complaint filed in this class action alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors: (1) that the Company inaccurately recorded and/or misclassified certain revenue and costs; (2) that, as a result, the Company overstated its revenue, assets, accounts receivable, royalties and other comprehensive income; (3) that Veritone maintained deficient internal controls over accounting and financial reporting; (4) that, as a result of the foregoing, the Company would be forced to restate certain of its financial statements, and (5) that, as a result, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis.
If you purchased or otherwise acquired Veritone securities during the Class Period, you may move the Court no later than 60 days from the date of this notice to ask the Court to appoint you as lead plaintiff.
Contact Us To Participate or Learn More:
If you wish to learn more about this action, or if you have any questions concerning this announcement or your rights or interests with respect to these matters, please contact us:
Charles Linehan, Esq.,
Glancy Prongay Wolke & Rotter LLP,
1925 Century Park East, Suite 2100,
Los Angeles California 90067
Email: shareholders@glancylaw.com
Telephone: 310-201-9150,
Toll-Free: 888-773-9224
Visit our website at www.glancylaw.com.
Follow us for updates on LinkedIn, Twitter, or Facebook.
If you inquire by email, please include your mailing address, telephone number and number of shares purchased.
To be a member of the Class you need not take any action at this time; you may retain counsel of your choice or take no action and remain an absent member of the Class.
This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.
View source version on businesswire.com: https://www.businesswire.com/news/home/20260521981549/en/
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