Investors Encouraged to Join SoundHound AI Securities Fraud Class Action

Overview of the Class Action Lawsuit Against SoundHound AI

On May 23, 2025, the Schall Law Firm announced the initiation of a class action lawsuit against SoundHound AI, Inc., shedding light on significant allegations of securities fraud. This lawsuit primarily targets investors who purchased shares between May 10, 2024, and March 3, 2025. The firm has urged affected shareholders to take action before the crucial deadline of May 27, 2025.

Allegations against SoundHound AI

According to the complaint, the central claims focus on violations of the Securities Exchange Act of 1934, specifically sections 10(b) and 20(a) along with Rule 10b-5 set forth by the U.S. Securities and Exchange Commission (SEC). The lawsuit brings to attention the misleading statements made by SoundHound to the market, suggesting a pattern of negligence regarding its financial reporting controls. These inadequacies reportedly affected the company’s accounting processes, especially concerning its acquisitions.

The lawsuit cites that SoundHound overstated its remedial actions to address internal control weaknesses, misleading the market about the actual state of its finances. Following its acquisition of Amelia, the company’s reported goodwill was claimed to be inflated, causing significant concerns over its financial reporting. These misrepresentations resulted in delayed filings of essential financial reports with the SEC, further exacerbating investor losses once the truth emerged.

Importance of Taking Action

Investors who believe they have suffered losses due to the alleged fraud are encouraged to join the class action. They can participate by contacting the Schall Law Firm directly. The firm offers an opportunity for eligible shareholders to recover their financial losses through this legal action. However, it’s critical for potential plaintiffs to understand that the class has not yet been certified, meaning that until certification occurs, they do not have legal representation in this lawsuit.

The Schall Law Firm has a solid reputation representing investors globally and specializes in addressing shareholders' rights and interests in securities litigation. Investors are encouraged to act swiftly given the looming deadline, as failure to do so may result in remaining as absent class members without any claim to recover their losses.

Contact Information

Potential plaintiffs can reach out to the Schall Law Firm via several channels. Brian Schall, the firm's principal attorney, can be contacted at their Los Angeles office located at 2049 Century Park East, Suite 2460, Los Angeles, CA 90067. Interested parties can also call 310-301-3335 or visit the firm's official website at www.schallfirm.com for further details and assistance.

Conclusion

The proceedings surrounding SoundHound AI raise vital concerns about fairness and transparency in the corporate sector, particularly regarding how companies report their financial standings to investors. Continued vigilance is essential for shareholders to protect their investments from misleading practices. Joining this class action represents a proactive step toward accountability and recovery of losses incurred due to alleged securities fraud.

For investors contemplating their next steps, it is advisable to familiarize themselves with the legal proceedings as outlined by the Schall Law Firm, ensuring they are well-informed in this evolving scenario.