#United States #New York #Class Action #Securities Fraud #SoundHound AI

SoundHound AI Securities Fraud Lawsuit: An Invitation to Investors

On April 14, 2025, the Rosen Law Firm, renowned for its commitment to investor rights, made a significant announcement pertaining to the SoundHound AI, Inc. (NASDAQ: SOUN, SOUNW) securities fraud lawsuit. This message serves as a reminder for all investors who acquired SoundHound securities during the critical time frame, known as the Class Period, which spans from May 10, 2024, to March 3, 2025. The impending deadline for potential lead plaintiffs is fast approaching on May 27, 2025.

Investors who purchased shares within this timeframe may be eligible for compensation, and remarkably, there will be no out-of-pocket expenses involved due to a contingency fee structure. This means that investors can join this class action litigation without the risk of upfront legal costs.

Next Steps for Interested Investors

To take the next step in joining the lawsuit and potentially claim compensation, investors can visit the Rosen Law Firm’s website at https://rosenlegal.com/submit-form/?case_id=36267. Alternatively, they can reach out directly to Phillip Kim, Esq. at 866-767-3653, or send an email to [email protected] to acquire further information. It is important to note that a class action lawsuit is already in motion, but to assert participation as a lead plaintiff—essentially representing fellow investors in directing the litigation—investors need to file a motion by the May 27 cutoff.

Rosen Law Firm's Credentials and Approach

Why should investors consider the Rosen Law Firm? The firm emphasizes the importance of selecting seasoned legal counsel, particularly those with proven success rates in leadership roles within securities class actions. Many competing firms issuing similar notices often lack the experience and resources necessary to effectively advocate for their clients. The Rosen Law Firm distinguishes itself with a strong track record, having previously achieved one of the largest settlements in a securities class action against a Chinese company and ranking at the top for numerous settlements since 2013. In 2019, they remarkably secured over $438 million for investors.

Laurence Rosen, the founding partner, was recognized by Law360 as a Titan of the Plaintiffs' Bar in 2020, showcasing the firm's commitment to investor advocacy.

Allegations Against SoundHound AI

The lawsuit brings to light serious allegations against SoundHound AI. According to the legal filings, throughout the Class Period, several misleading statements were made by the defendants, and critical information was withheld. Specifically, the principles alleged include:
1. Material Weaknesses: Significant deficiencies in SoundHound's internal controls over financial reporting hampered its ability to accurately account for corporate acquisitions.
2. Overstated Remediation: SoundHound is accused of overstating both the success of its remediation efforts regarding these internal control weaknesses and its capacity to remedy them.
3. Inflated Goodwill: The result of these deficiencies led to an inflated valuation of goodwill following the Amelia Acquisition, which would have to be corrected.
4. Financial Obligations: Further complications were anticipated in effectively accounting for SYNQ3 and Amelia Acquisitions due to these weaknesses.
5. Risk of Delayed Reporting: There were increased risks that SoundHound would fail to file certain financial reports to the SEC in a timely manner.
6. Misleading Public Statements: Overall, it was claimed that SoundHound's public statements were materially misleading throughout the relevant time.

As accurate information became available to the market, investors reportedly faced financial damages due to these misleading representations.

Conclusion: Act Before the Deadline

The opportunity to join the class action for SoundHound AI's securities fraud lawsuit is a pivotal moment for involved investors. With a clear course of action and no financial risks upfront, interested shareholders should promptly assess their eligibility and act before the approaching deadline on May 27, 2025. For optimal results in this complex legal landscape, selecting the right counsel, like the Rosen Law Firm, can make a significant difference in the outcome of this class action suit. Regular updates can be followed on LinkedIn, Twitter, and Facebook linked through the Rosen Law Firm's official channels.