Investors Target SoundHound AI, Inc. in Class Action Lawsuit for Alleged Securities Fraud
On May 9, 2025, Levi & Korsinsky, LLP officially announced a class action lawsuit against SoundHound AI, Inc. (NASDAQ: SOUN), aiming to recover losses for investors affected by alleged securities fraud. This lawsuit is classified under a specific timeline, covering the alleged wrongdoing from May 10, 2024, to March 3, 2025.
The lawsuit's objective is to assist investors who faced financial loss due to misleading statements made by the company regarding its financial operations and internal controls. Specifically, the complaint claims that SoundHound AI failed to disclose important material weaknesses in its internal controls related to financial reporting. These deficiencies reportedly hindered the firm's capacity to account accurately for corporate acquisitions.
1. False Statements: The complaint alleges that the defendants made numerous false statements and omissions concerning the company's internal control weaknesses, which impacted its accounting practices.
2. Goodwill Reporting: It asserts that the goodwill reported after the Amelia Acquisition was inflated and had to be corrected due to these undisclosed weaknesses.
3. Impacts on Filing: The defendants are also accused of increasing the risk of the company failing to file its financial reports on time with the SEC, impacting investor confidence.
4. Overstated Remediation Efforts: The company allegedly overstated its efforts and ability to remediate the material weaknesses present in its financial reporting.
Investors who believe they've incurred losses from their investments in SoundHound AI between the specified dates have a unique opportunity. They can request to be appointed as lead plaintiffs in the class action lawsuit until May 27, 2025. It's important to note that involvement as a lead plaintiff is not necessary for individuals to share in any potential recovery.
Additionally, those who join the class do not incur any out-of-pocket expenses to participate in this lawsuit. Levi & Korsinsky assure that there are no initial costs or fees associated with participating in this case.
Levi & Korsinsky, a prominent name in securities litigation, has a history of successfully recovering significant amounts for shareholders. Over the last two decades, this law firm has built a reputation for handling complex securities cases effectively. They employ a robust team of over 70 personnel dedicated to serving investor clients. Their success has placed them in the ISS Securities Class Action Services' Top 50 Report consistently for seven years, indicating their standing among the top securities litigation firms in the U.S.
If you are a stakeholder affected by the allegations against SoundHound AI, it’s crucial to gather more information and perhaps take part in the legal proceedings. For more information or to connect with a representative from Levi & Korsinsky, interested investors can reach out via email or telephone as specified in the announcement.
To get in touch with the legal team or learn more about how to participate, investors can contact Joseph E. Levi, Esq. through the provided email, phone number or by visiting the firm's website. It is always advisable to act promptly, as timelines for class action participation are strict, and every concerned investor should be aware of their rights and available options.
The filed class action lawsuit against SoundHound AI, Inc. emphasizes the importance of transparency and integrity in corporate financial practices. As this situation unfolds, it serves as a reminder to investors about the necessity of scrutiny over the financial statements and disclosures of publicly traded companies.
Class Action Details
The lawsuit's objective is to assist investors who faced financial loss due to misleading statements made by the company regarding its financial operations and internal controls. Specifically, the complaint claims that SoundHound AI failed to disclose important material weaknesses in its internal controls related to financial reporting. These deficiencies reportedly hindered the firm's capacity to account accurately for corporate acquisitions.
Key Allegations:
1. False Statements: The complaint alleges that the defendants made numerous false statements and omissions concerning the company's internal control weaknesses, which impacted its accounting practices.
2. Goodwill Reporting: It asserts that the goodwill reported after the Amelia Acquisition was inflated and had to be corrected due to these undisclosed weaknesses.
3. Impacts on Filing: The defendants are also accused of increasing the risk of the company failing to file its financial reports on time with the SEC, impacting investor confidence.
4. Overstated Remediation Efforts: The company allegedly overstated its efforts and ability to remediate the material weaknesses present in its financial reporting.
What Investors Should Know
Investors who believe they've incurred losses from their investments in SoundHound AI between the specified dates have a unique opportunity. They can request to be appointed as lead plaintiffs in the class action lawsuit until May 27, 2025. It's important to note that involvement as a lead plaintiff is not necessary for individuals to share in any potential recovery.
Additionally, those who join the class do not incur any out-of-pocket expenses to participate in this lawsuit. Levi & Korsinsky assure that there are no initial costs or fees associated with participating in this case.
The Reputation of Levi & Korsinsky
Levi & Korsinsky, a prominent name in securities litigation, has a history of successfully recovering significant amounts for shareholders. Over the last two decades, this law firm has built a reputation for handling complex securities cases effectively. They employ a robust team of over 70 personnel dedicated to serving investor clients. Their success has placed them in the ISS Securities Class Action Services' Top 50 Report consistently for seven years, indicating their standing among the top securities litigation firms in the U.S.
If you are a stakeholder affected by the allegations against SoundHound AI, it’s crucial to gather more information and perhaps take part in the legal proceedings. For more information or to connect with a representative from Levi & Korsinsky, interested investors can reach out via email or telephone as specified in the announcement.
Get Involved
To get in touch with the legal team or learn more about how to participate, investors can contact Joseph E. Levi, Esq. through the provided email, phone number or by visiting the firm's website. It is always advisable to act promptly, as timelines for class action participation are strict, and every concerned investor should be aware of their rights and available options.
Conclusion
The filed class action lawsuit against SoundHound AI, Inc. emphasizes the importance of transparency and integrity in corporate financial practices. As this situation unfolds, it serves as a reminder to investors about the necessity of scrutiny over the financial statements and disclosures of publicly traded companies.
Topics Financial Services & Investing）
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