Veritone Executives Named in Securities Class Action Over Financial Restatements

The lawsuit, filed in the United States District Court for the Central District of California, centers on the period between October 14, 2025, and April 14, 2026. Plaintiffs contend that Steelberg and Zemetra, through their roles as controlling persons under Section 20(a) of the Securities Exchange Act, failed to ensure the accuracy of financial disclosures despite their personal certifications under the Sarbanes-Oxley Act.

According to the complaint, the company’s November 2025 financial filings assured investors of the integrity of internal controls even as they acknowledged weaknesses. These assurances were undermined when Veritone later declared the statements unreliable, leading to a $2.2 million revenue restatement. The legal action alleges that the executives possessed material non-public information regarding misclassified revenue and costs while simultaneously touting growth in the company’s core AI software business to analysts and institutional investors.

Investors who incurred losses during the class period have until July 20, 2026, to apply for lead plaintiff status. The litigation, led by the firm Levi & Korsinsky, is being pursued on a contingency basis, meaning participants do not incur upfront legal fees. The case highlights the potential for individual liability when executives sign off on financial data that subsequently requires correction.