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Class Action Lawsuit: Key Information About SoundHound AI, Inc.

On March 29, 2025, Robbins LLP announced the filing of a class action lawsuit on behalf of all individuals and entities that purchased or acquired SoundHound AI, Inc. (NASDAQ: SOUN) securities between May 10, 2024, and March 3, 2025. The lawsuit arises from significant allegations surrounding the company's financial reporting and internal control mechanisms.

Overview of SoundHound AI, Inc.

SoundHound AI is known for its innovative voice artificial intelligence platform that aids businesses in providing exceptional conversational experiences to customers. However, recent allegations indicate that the company's internal controls related to corporate acquisitions may not have been effective, a concern that has brought their management practices under scrutiny.

Allegations Against SoundHound AI

According to the lawsuit, the key allegations against SoundHound AI include:
1. Material Weaknesses in Internal Controls: It is alleged that SoundHound did not adequately disclose material weaknesses in its internal controls over financial reporting, which severely impacted the company's ability to account for its corporate acquisitions.
2. Misrepresentation of Remediation Efforts: The company purportedly overstated its progress in remediating these control weaknesses, misleading shareholders about the financial health and operational integrity of SoundHound AI.
3. Inflated Goodwill: Following the acquisition of Amelia, it is claimed that the reported goodwill was inflated, necessitating corrections and creating further complications.
4. Additional Costs and Delays: The weaknesses in internal controls are said to increase the likelihood of incurring added time and expenses when accounting for the SYNQ3 and Amelia acquisitions.
5. Impact on Financial Reporting: These internal issues raised concerns that SoundHound may fail to file its financial reports with the SEC in a timely manner, posing a critical risk to investors.

Recent Developments

The situation escalated on March 4, 2025, when SoundHound announced its inability to timely file its Annual Report for 2024. The company indicated that due to the complexities involved in accounting for recent acquisitions, additional time was required to prepare the necessary financial statements. This disclosure led to a notable decrease in SoundHound's stock price, falling $0.61 per share (5.86%) to a closing price of $9.72 on the day of the announcement.

Next Steps for Investors

For affected shareholders, Robbins LLP encourages participation in the class action lawsuit against SoundHound AI, Inc. Shareholders interested in acting as lead plaintiffs should reach out to the firm. A lead plaintiff serves to represent the collective interests of the class members in litigation. Notably, investors are not obligated to participate actively to receive potential recoveries. Those opting for non-participation can still remain as absent class members.

Legal Representation and Support

Robbins LLP operates on a contingency fee basis, which means that shareholders only pay fees or expenses if the litigation is successful. This structure ensures that legal representation is accessible to those who have been affected by the issues surrounding SoundHound AI.

About Robbins LLP

Founded in 2002, Robbins LLP has established itself as a leader in shareholder rights litigation. The firm focuses on recovering losses for investors and improving corporate governance while holding company executives accountable for their actions. Shareholders can stay informed by signing up for Stock Watch, which provides free alerts on developments in corporate governance and misconduct.

For more information on the class action or to discuss potential legal representation, interested shareholders can contact Robbins LLP directly via their website or through the provided contact numbers.

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This class action signals significant implications for SoundHound AI, Inc.'s shareholders, emphasizing the importance of accountability and transparency in corporate governance.