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The complaint, filed on May 21, 2026, in the U.S. District Court for the Central District of California, was brought on behalf of investors who purchased Veritone securities between October 14, 2025, and April 14, 2026. According to the lawsuit, a series of corrective disclosures beginning on March 26, 2026, progressively revealed the extent of the accounting problems.
On March 27, 2026, shares fell 29.5% after the company disclosed it was still finalizing the accounting treatment for certain revenue transactions, including a non-monetary software transaction with a negotiated price of $13.0 million and an estimated value, based on the stand-alone selling price of the software, as low as $0.4 million. On April 1, 2026, shares fell another 9.14% following the company’s disclosure that it could not file its annual report on time and that previously reported third-quarter revenue might need to be reduced. On April 15, 2026, shares dropped an additional 8.3% after the company stated that its Q3 2025 financial statements should no longer be relied upon. From its high of $8.39 during the period at issue, the stock lost more than 75% of its value.
