PR Newswire
Important Information Regarding Section 20(a) Individual Liability Claims Against Veritone’s CEO and CFO for Alleged Revenue Overstatements That Forced a Restatement and Cost Shareholders Millions
NEW YORK, June 17, 2026 /PRNewswire/ — Levi & Korsinsky, LLP alerts investors in Veritone, Inc. (NASDAQ: VERI) of a pending securities class action naming two senior executives as individual defendants. Class Period: October 14, 2025 through April 14, 2026. Find out if you qualify to recover losses or contact Joseph E. Levi, Esq. at [email protected] | (212) 363-7500.
Veritone shares lost $0.77 per share (29.5%) in a single session after the company revealed it was still finalizing accounting for certain revenue transactions. Subsequent disclosures forced a full restatement of Q3 2025 financial statements. The Court has set July 20, 2026 as the deadline to apply for lead plaintiff appointment.
The Named Individual Defendants
Ryan Steelberg, Veritone’s Chief Executive Officer, and Michael L. Zemetra, Veritone’s Chief Financial Officer, are each named as defendants in the securities class action pending in the United States District Court for the Central District of California. The complaint charges that both executives possessed the power and authority to control the contents of Veritone’s SEC filings, press releases, and presentations to analysts and institutional investors throughout the Class Period.
Section 20(a) Control Person Framework
The action asserts claims under Section 20(a) of the Securities Exchange Act of 1934, which imposes liability on individuals who act as “controlling persons” of an entity that violates Section 10(b). The complaint contends that Steelberg and Zemetra:
- Were provided with copies of the Company’s reports and press releases prior to or shortly after issuance and had the ability to prevent their issuance or cause corrections
- Possessed access to material non-public information revealing that Veritone had inaccurately recorded and misclassified certain revenue and costs
- Knew that positive representations about the Company’s financial performance lacked a reasonable basis
- Had direct authority over the Company’s accounting and financial reporting processes that allegedly failed to prevent $2.2 million in revenue overstatements
Sarbanes-Oxley Certification Obligations
As CEO and CFO respectively, Steelberg and Zemetra were required under Sections 302 and 906 of the Sarbanes-Oxley Act to personally certify the accuracy and completeness of Veritone’s quarterly and annual filings with the SEC. The Q3 2025 Form 10-Q, filed November 7, 2025, carried these certifications. That same filing acknowledged a pre-existing material weakness in internal controls yet assured investors the weakness “did not result in any identified material misstatements to the financial statements.” Five months later, the Company determined those very financial statements “should no longer be relied upon.”
“Corporate officers have a duty to ensure their companies’ public statements are accurate and complete. When executives certify financial statements under Sarbanes-Oxley, they assume personal responsibility for the integrity of those disclosures,” stated Joseph E. Levi, Esq.
Find out if you qualify to recover losses or call (212) 363-7500.
Alleged Control Person Liability
The pleading asserts that both individual defendants directed or had the authority to direct Veritone’s day-to-day operations, including oversight of revenue recognition practices under ASC 606 that are now at the center of the restatement. The action contends their control extended to the Company’s communications with the investing public, including the October 14, 2025 preliminary results announcement and the November 6, 2025 press release touting 200% growth in core AI software revenue.
Submit your information to join the recovery or contact Joseph E. Levi, Esq. at (212) 363-7500.
Levi & Korsinsky, LLP — Top 50 securities litigation firm (ISS, seven consecutive years). Over 70 professionals. Hundreds of millions recovered.
Frequently Asked Questions About the VERI Lawsuit
Q: Who are the defendants named in the VERI lawsuit? A: The complaint names Veritone, Inc. and individual defendants Ryan Steelberg (CEO) and Michael L. Zemetra (CFO), who signed SEC filings and certified financial disclosures under Sarbanes-Oxley throughout the Class Period.
Q: What specific misstatements does the VERI lawsuit allege? A: The complaint alleges Veritone made materially false or misleading statements regarding revenue recognition, asset valuations, and internal controls during the Class Period. When the true state was revealed through a series of corrective disclosures beginning March 26, 2026, the stock price declined sharply.
Q: What is a lead plaintiff and why does it matter? A: A lead plaintiff is the investor appointed by the court to represent the entire class. Lead plaintiffs are typically investors with the largest documented losses. Being appointed does not increase individual recovery but gives direct oversight of how the case is run.
Q: How do I know if I lost enough money to be the lead plaintiff? A: There is no minimum loss threshold. Courts appoint the investor with the largest provable loss who is willing and able to represent the class adequately. Contact Levi & Korsinsky before July 20, 2026 to evaluate.
Q: What if I already sold my VERI shares — can I still recover losses? A: Yes. Eligibility is based on when you purchased, not whether you still hold them. Investors who bought during the Class Period and sold at a loss may still participate.
Q: What does it cost me to participate? A: Nothing. Securities class actions are handled on a pure contingency basis. No upfront fees, no retainer, no out-of-pocket costs.
Q: What court was the VERI class action filed in? A: The case was filed in the United States District Court for the Central District of California, governed by the Private Securities Litigation Reform Act of 1995.
CONTACT:
Levi & Korsinsky, LLP
Joseph E. Levi, Esq.
Ed Korsinsky, Esq.
33 Whitehall Street, 27th Floor
New York, NY 10004
[email protected]
Tel: (212) 363-7500
Fax: (212) 363-7171
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SOURCE Levi & Korsinsky, LLP
