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

Class Action Lawsuit Filed Against SoundHound AI, Inc.

A class action lawsuit has recently been filed against SoundHound AI, Inc. (NASDAQ: SOUN), involving allegations of securities fraud that has led to significant investor losses. According to Levi & Korsinsky, LLP, the legal firm informing affected parties, the lawsuit covers a timeframe during which claims of inflated corporate values and failures in financial reporting emerged. This comprehensive situation outlines the potential ramifications for individuals who invested in SoundHound within the specified dates, namely May 10, 2024, to March 3, 2025.

Case Details and Allegations

The filed complaint highlights several claims against the company, basically stating that SoundHound AI, Inc. obstructed transparent reporting and concealed critical information regarding its internal financial controls. The allegations suggest that:
1. The company failed to manage its material weaknesses in financial reporting, which affected its ability to accurately record corporate acquisitions.
2. SoundHound overstated its successful remediation of these weaknesses, misguiding stakeholders about its operational transparency.
3. Following its Amelia Acquisition, the reported goodwill was inflated, necessitating corrections.
4. Additional time and financial resources were likely required for proper accounting for the SYNQ3 and Amelia Acquisitions, emphasizing operational inefficiencies.

As a direct consequence of these issues, it is alleged that the company faced obstacles in filing accurate financial reports with the SEC, leading to public statements that were deemed materially false.

Next Steps for Investors

Investors who sustained losses from their association with SoundHound AI, Inc. during the lawsuit's applicable period have until May 27, 2025, to seek appointment as lead plaintiffs in the case. Notably, being part of the class action does not require any individuals to serve as lead plaintiff, enabling wider participation.

What is even more compelling for those eligible is that enrolling in this class action does not incur any out-of-pocket expenses. Levi & Korsinsky assures investors that their involvement in this case could yield compensation without any direct financial obligations.

Trust in Legal Representation

Levi & Korsinsky, with over two decades of experience in advocating for shareholders, emphasizes its proven track record in securities litigation. They have successfully recovered substantial amounts for wronged investors and have consistently ranked among the top firms specializing in securities law. Investors can feel confident knowing that the firm possesses a wealth of resources and legal expertise tailored for handling complex securities cases.

Contact Information

For more information, investors are encouraged to reach out directly to Levi & Korsinsky. Investors can email Joseph E. Levi, Esq. at [email protected] or call (212) 363-7500.

As the legal proceedings unfold, investors are advised to stay informed and seek counsel to protect their interests within this upcoming class action lawsuit. The situation around SoundHound AI, Inc. is evolving; consequently, timely actions will be crucial for those affected during this period.