The investigation centers on a period between October 14, 2025, and April 14, 2026, during which management allegedly utilized improper accounting practices to inflate revenue and assets. According to the complaint, Veritone failed to maintain adequate internal controls, leading to the misclassification of revenue and costs. These issues came to light after the company announced on March 26, 2026, that it was finalizing determinations regarding specific revenue transactions—a disclosure that triggered a 29% drop in share price the following day.

Subsequent delays in filing the company's annual report and the formal admission on April 14, 2026, that financial statements for the prior year could no longer be relied upon further damaged investor confidence. Reed Kathrein, a partner at Hagens Berman, stated the firm is examining whether these financial inaccuracies were the result of intentional deception. Investors who suffered losses during the specified period have until July 20, 2026, to move for appointment as lead plaintiff in the ongoing litigation.