Veritone Faces Class Action Lawsuit Following Accounting Disclosures

The legal action centers on Veritone’s handling of accounting determinations under ASC 606. On March 26, 2026, the company announced it was finalizing revenue calculations, a disclosure that triggered a 29.5% decline in its stock price. Subsequent filings revealed deeper issues, including an inability to file its 2025 Annual Report on time and the potential need to restate financial results for the second and third quarters of 2025.

By mid-April, Veritone officially notified the SEC that its unaudited financial statements for the three and nine-month periods ending September 30, 2025, were no longer reliable. The company cited significant revenue overstatements and net loss understatements resulting from errors in software valuation and the misclassification of agency transactions. These revelations led to successive drops in share value, prompting the Pomerantz LLP firm to initiate the class action on behalf of affected shareholders.