SoundHound AI Faces Legal Action: Important Update for Shareholders

Overview of the Legal Concerns Surrounding SoundHound AI, Inc.

As of April 21, 2025, the Gross Law Firm has alerted shareholders of SoundHound AI, Inc. (NASDAQ: SOUN) about potential securities law violations. This notice serves as a call to action for investors who acquired shares during a specific timeframe. Shareholders are urged to contact the firm to discuss their rights and consider joining a class action lawsuit.

Background of Allegations

The allegations against SoundHound AI center on material misstatements and undisclosed information related to the company's internal controls over financial reporting. These deficiencies purportedly hindered SoundHound's ability to accurately account for corporate acquisitions, notably after the Amelia Acquisition. Additionally, the company is accused of exaggerating its capacity to rectify these weaknesses, subsequently inflating reported goodwill.

The following points summarize the key allegations:
1. Material Weaknesses: The complaint asserts that significant flaws in SoundHound's internal controls impeded accurate reporting of financial information.
2. Overstated Remediation Efforts: The company allegedly overstated its progress in fixing these internal control deficiencies.
3. Inflated Goodwill: Following the Amelia Acquisition, the goodwill reported by SoundHound is claimed to be inflated due to the above weaknesses.
4. Inability to Timely File Reports: Due to the identified issues, SoundHound may struggle to file necessary financial reports with the SEC on time.
5. False Public Statements: As a result of these circumstances, the company's public communications were misleading at various times.

Important Dates and Steps for Shareholders

The critical date for shareholders is May 27, 2025. By this deadline, individuals who purchased shares of SOUN from May 10, 2024, to March 3, 2025, are encouraged to register their information with the Gross Law Firm. Investors seeking to be considered for lead plaintiff status should do so before this date as well.

What’s Next?

Once registered, shareholders will receive updates through a portfolio monitoring system developed to inform them throughout the case's progression. Importantly, there is no obligation or cost to participate in this lawsuit.

Why Choose the Gross Law Firm?

The Gross Law Firm is a well-established class action firm dedicated to protecting investors from fraudulent activities and ensuring corporate accountability. Their goal is to recover losses incurred due to misleading business practices. Investors looking for legal representation and support may find comfort in the expertise and commitment of the Gross Law Firm.

Conclusion

As this situation develops, affected shareholders of SoundHound AI must remain proactive and informed. This legal action serves as a reminder of the significant risks associated with stock investments, particularly when corporate governance issues arise. For those who feel their rights may have been violated, reaching out to a qualified law firm like the Gross Law Firm could be a vital step toward justice and recovery.