Levi & Korsinsky Alerts SoundHound AI Investors of Class Action Lawsuit Deadline Approaching
Levi & Korsinsky Alerts SoundHound AI Investors of Class Action Lawsuit Deadline Approaching
On May 23, 2025, Levi & Korsinsky, LLP reached out to investors of SoundHound AI, Inc. (NASDAQ: SOUN) to inform them about a pending class action lawsuit against the company. The lawsuit aims to recover financial losses for SoundHound AI investors who were affected by what is alleged to be securities fraud during the period from May 10, 2024, to March 3, 2025.
Class Action Overview
The essence of the class action is to address critical failures in SoundHound's internal controls over financial reporting, which are said to have hampered the company’s capacity to manage its acquisitions effectively. It outlines several charges against the company including misleading statements and exaggerated claims about its financial remediations. Here are the major allegations:
1. Material Weaknesses: The complaint states that material inadequacies in SoundHound’s internal controls have negatively impacted its ability to account for corporate mergers accurately.
2. Inflated Goodwill: It’s reported that the goodwill attributed to SoundHound following its acquisition of Amelia was overstated, requiring adjustments.
3. Reporting Delays: The report implies that the company is at risk of failing to file necessary financial disclosures with the SEC on time, girded further by unidentified weaknesses.
Considering these points, SoundHound's public communications are criticized for being materially false and misleading during the relevant timelines, raising public suspicion and eroding investor trust.
Next Steps for Investors
Stakeholders who believe they have incurred losses related to their investments in SoundHound AI during the relevant timeframe must act swiftly. The deadline for requesting the Court to appoint a lead plaintiff is set for May 27, 2025. However, participation as a lead plaintiff is not a requirement for sharing in any potential recoveries through this class action.
No Financial Risk to Class Members
Participation in this lawsuit poses no financial risk to class members. Individuals involved can pursue compensation without needing to front any costs or fees. Levi & Korsinsky firm emphasizes that potential claimants will experience no financial liability or obligation when joining the lawsuit.
Why Levi & Korsinsky?
Levi & Korsinsky boasts a track record of garnering hundreds of millions of dollars for shareholders facing adversity. The firm has built its reputation over the past 20 years, marked by victories in complex securities litigations. With a dedicated team of over 70 professionals, they are uniquely poised to navigate high-stakes legal battles. Their consistent recognition in ISS Securities Class Action Services' Top 50 report for seven consecutive years underscores their status as a leading securities litigation firm in America.
Contact Information
For those interested in pursuing further information or participating in the class action lawsuit regarding SoundHound AI, the firm can be contacted directly:
- - Joseph E. Levi, Esq.
- - Ed Korsinsky, Esq.
New York, NY 10004
Email: [email protected]
Phone: (212) 363-7500
Fax: (212) 363-7171
Website: zlk.com
As this class action continues to unfold, affected investors must stay informed and act promptly to protect their interests.
Topics Financial Services & Investing）
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