SOUN Shareholders Urged to Act Amid Securities Fraud Class Action Details

SoundHound AI, Inc. Shareholders Notice

On April 18, 2025, the law firm Kessler Topaz Meltzer & Check, LLP formally notified investors about a securities fraud class action lawsuit filed against SoundHound AI, Inc. (NASDAQ: SOUN). This lawsuit involves investors who purchased or acquired SoundHound securities between May 10, 2024, and March 3, 2025, which is defined as the "Class Period." The deadline to apply as a lead plaintiff in this matter is approaching on May 27, 2025.

Understanding the Allegations

The core of the complaint alleges significant deviations from acceptable accounting practices and corporate disclosures by SoundHound. Key points include claims that:

1. False Statements: Throughout the Class Period, the company made a series of misleading statements and failed to disclose material weaknesses in its internal financial controls. These deficiencies reportedly compromised SoundHound's ability to accurately account for its acquisitions.

2. Misrepresentation of Remediation Efforts: SoundHound allegedly overstated its capability to rectify the internal control issues, which affected reports related to corporate acquisitions. In particular, concerns were raised after the company's acquisition of Amelia Holdings, Inc., indicating that reported goodwill figures were inflated and required adjustments.

3. Financial Report Delays: Due to the aforementioned weaknesses, there is a heightened risk that SoundHound would struggle to file financial reports with the SEC in a timely manner, potentially exacerbating investor concerns and fiscal scrutiny.

4. Impending Expenses: The lawsuit highlights that SoundHound may incur additional costs and delays concerning the financial accounting processes of not just the acquisition of Amelia Holdings but also SYNQ3, which it acquired shortly before the Class Period commenced in January 2024.

These allegations outline a troubling narrative for investors, suggesting that the information released by SoundHound was not only misleading but could impact investor decisions and the company’s market standing.

The Path Forward for Investors

SoundHound investors are encouraged to act promptly; if they have experienced financial losses, they have the option to seek appointment as a lead plaintiff. The lead plaintiff will be an essential figure in guiding the litigation and ensuring adequate representation for the involved parties. Interested investors have until May 27, 2025, to either apply for this position or remain a class member.

It is crucial to note that a lead plaintiff selected for the case will retain the right to decide on the representation's legal team, ensuring that those who have the most significant financial stake are advocating for their interests.

For those wishing to further investigate this lawsuit or explore their options, Kessler Topaz Meltzer & Check, LLP has urged them to visit their website, or contact attorney Jonathan Naji directly. The firm has a solid reputation for pursuing justice on behalf of investors who have fallen victim to corporate misconduct.

About Kessler Topaz Meltzer & Check, LLP

Kessler Topaz Meltzer & Check, LLP is a prominent law firm specializing in prosecuting class actions in both state and federal courts across the United States and abroad. Their track record includes recovering billions for investors affected by fraudulent activities. The firm operates with a dedicated mission to protect investors and ensure accountability amongst corporations. For more information and support, potential claimants can reach out through their contact details provided above.

It's advisable for affected SoundHound investors to remain vigilant during this crucial period as further developments may unfold in this important class action lawsuit.