Peiffer Wolf is investigating Veritone, Inc. (NASDAQ: VERI), along with its Chief Executive Officer Ryan Steelberg and Chief Financial Officer Michael L. Zemetra for potential violations of SEC Rule 10b-5 and related federal securities laws in connection with alleged material misrepresentations about the company’s financial results, revenue recognition practices, and internal controls over financial reporting. Veritone, Inc. is a Delaware corporation headquartered in Irvine, California that provides artificial intelligence (“AI”) computing solutions and services.
If you purchased Veritone, Inc. securities between October 14, 2025, and April 14, 2026, and suffered losses, Contact Us as soon as possible for a Free Case Evaluation by filling out an online form or by calling 585-310-5140.
Important: The deadline to seek lead plaintiff status in this lawsuit is July 20, 2026.
Veritone Stock | What Happened
According to a complaint filed in Federal Court, Veritone’s CEO Ryan Steelberg and its CFO Michael L. Zemetra made materially false and misleading statements to investors throughout the Class Period about the company’s revenue, financial performance, and internal controls. The lawsuit specifically alleges:
- Materially False Revenue Statements Throughout the Class Period – Beginning on October 14, 2025, Veritone announced preliminary Q3 2025 financial results touting a 30% year over year increase in revenue, totaling $28.5–$28.7 million. They also reported their “core AI software revenue” growing “more than 200%.” On November 6, 2025, the company filed a formal quarterly report reporting revenue of $29.1 million and highlighted major contract wins including deals with ESPN, the NCAA, and Newsmax. The complaint alleges that these revenue figures were materially false because the company had inaccurately recorded and/or misclassified certain revenue and costs in violation of ASC 606, the governing revenue recognition standard, artificially inflating reported results.
- Internal Control Deficiencies – Veritone’s actual financial position was allegedly obscured by inaccurate reporting. Veritone issued contradictory information in their 3Q 2025 Form 10-Q quarterly report regarding their internal controls. They reported a material weakness which, “was not remediated as of September 30, 2025, and could have resulted in a material misstatement to our interim condensed consolidated financial statements.” Contradictorily, they also reported that this weakness did not result in any “identified material misstatements to the financial statements.” Months later, in November 2025, Veritone issued a press release to clarify the previous statement. However, in that release they did not disclose they had inaccurately reported revenue and would need to restate their financial statements.
Stock Price Decline and Alleged Investor Harm
On March 26, 2026, after market close, Veritone disclosed that it could not provide finalized Q4 2025 results because it was “still finalizing its accounting determination of certain revenue transactions under ASC 606.” The company only issued a wide revenue range of $18.1–$30.0 million for the year. After this news, Veritone’s stock fell $0.77, or approximately 29.5%, to close at $1.84 per share on March 27, 2026.
On April 1, 2026, before market open, Veritone filed a Form NT 10-K disclosing that it was unable to file its annual report on time due to delays in finalizing “barter revenue transactions.” The company further disclosed a potential reduction of Q3 2025 revenue by $1.5–$2.5 million (5.2–8.6% of the $29.1 million previously reported). Veritone also reported it was evaluating whether its Q2 and Q3 2025 financial statements may need to be restated. Soon after, the stock fell approximately 9.1%, to close at $1.79 per share.
On April 14, 2026, after market close, Veritone filed a Form 8-K, Item 4.02 formally declaring that its previously issued Q3 2025 financial statements “should no longer be relied upon” due to errors resulting in “a significant overstatement of revenue and understatement of net loss.” The filing confirmed multiple error categories including improper valuation of consideration received, misclassification of agent/principal revenue, and deficient internal controls. On this news, the stock fell approximately 8.3%, to close at $2.09 per share on April 15, 2026. Combined across all three corrective disclosure events, Veritone’s stock declined more than 45% from its Class Period high.
Veritone Lawsuit | Legal Claims
The complaint alleges that Veritone and its senior executives violated two provisions of the federal securities laws:
- Section 10(b) of the Securities Exchange Act of 1934 and SEC Rule 10b-5 (Securities Fraud) — Section 10(b) and Rule 10b-5 prohibit any person from making false or misleading statements of material fact in connection with the purchase or sale of securities. The complaint alleges that Veritone, CEO Ryan Steelberg, and CFO Michael L. Zemetra violated these provisions by knowingly or recklessly making materially false and misleading statements — and omitting material facts — about the company’s revenue, financial results, and the effectiveness of its internal controls over financial reporting throughout the Class Period.
- Section 20(a) of the Securities Exchange Act of 1934 (Control Person Liability) — Section 20(a) provides that individuals who control a company can be held liable for the company’s securities law violations. The complaint alleges that Steelberg and Zemetra, as CEO and CFO of Veritone, had the power to control the company’s public statements and are therefore personally liable for the alleged violations.
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Veritone and its senior executives allegedly misled investors by repeatedly reporting strong revenue growth and certifying the effectiveness of its internal controls — while concealing that the company had inaccurately recorded and misclassified revenue in violation of ASC 606, that its financial statements were materially false, and that its internal controls were deficient. When Veritone ultimately disclosed the truth through a series of corrective disclosures in March and April 2026, investors allegedly suffered substantial losses.
Peiffer Wolf is currently investigating potential Rule 10b-5 violations involving Veritone, Inc. securities sold to retail investors. If you purchased Veritone, Inc. (NASDAQ: VERI) securities during the Class Period and suffered losses, Contact Us for a Free Case Evaluation by filling out an online form or calling 585-310-5140.
Important: The deadline to seek lead plaintiff status in this lawsuit is July 20, 2026.
FAQ
What is the Veritone lawsuit about?
A federal securities complaint filed in the U.S. District Court for the Central District of California alleges that Veritone, Inc. and its CEO, Ryan Steelberg, and CFO, Michael L. Zemetra, violated SEC Rule 10b-5 by making materially false and misleading statements about the company’s revenue, financial performance, and internal controls. The complaint alleges that from October 2025 through April 2026, Veritone reported strong Q3 2025 revenue of $29.1 million and touted AI contract wins while concealing that these results were materially overstated due to improper revenue recognition practices under ASC 606. When the company disclosed in March and April 2026 that its financial statements could not be relied upon and formally restated its Q3 2025 results, Veritone’s stock declined more than 45% from its Class Period high across three separate corrective disclosure events.
Who is included in the Class Period, and what do investors need to have experienced?
The Class Period is October 14, 2025 through April 14, 2026, inclusive. Investors who purchased or otherwise acquired Veritone, Inc. common stock or other securities during this period and suffered losses may be eligible to participate in the class action lawsuit. You do not need to have sold your shares to qualify — investors who still hold their shares may also be eligible.
What is the lead plaintiff deadline, and why does it matter?
The lead plaintiff deadline is July 20, 2026. Under the Private Securities Litigation Reform Act (“PSLRA”), the investor with the largest documented losses who files a timely motion may be appointed lead plaintiff and play a central role in directing the litigation, selecting lead counsel, and approving any settlement. Missing this deadline does not prevent you from participating in any recovery — but it does prevent you from seeking lead plaintiff appointment. We encourage investors with significant losses to contact us as soon as possible.
Do I need to have sold my shares to participate?
No. Investors who purchased Veritone securities during the Class Period and suffered losses — whether or not they have sold their shares — may be eligible to participate in the lawsuit and any recovery. If you still hold your shares, your loss is calculated based on the decline in the stock’s value from the price you paid.
How can I get a free case evaluation?
Peiffer Wolf is investigating these claims on behalf of investors who purchased Veritone, Inc. (NASDAQ: VERI) securities during the Class Period and suffered losses. You can request a Free Case Evaluation by filling out an online form or calling 585-310-5140. The case is pending in the United States District Court for the Central District of California (Case No. 8:26-cv-01275). The lead plaintiff deadline is July 20, 2026.
