Faruqi & Faruqi, LLP Investigates SoundHound AI for Investor Losses

Investigating SoundHound AI: A Call for Investors' Attention

Faruqi & Faruqi, LLP, an acclaimed national securities law firm, has announced an ongoing investigation into potential claims involving SoundHound AI, Inc. This scrutiny comes on behalf of investors who may have experienced significant financial losses due to recent developments regarding the company's reporting practices and financial disclosures.

Background of the Investigation

On May 22, 2025, the firm issued a public alert, prompting investors who suffered losses exceeding $100,000 while investing in SoundHound AI, particularly during the period from May 10, 2024, to March 3, 2025, to contact them for potential legal recourse. Investors are reminded of the impending deadline of May 27, 2025, which is crucial for those wishing to act as lead plaintiffs in a federal class action lawsuit against the company.

The allegations against SoundHound are serious, involving claims that the company, along with its executives, breached federal securities laws by making misleading statements and failing to disclose critical information related to its financial controls. Specifically, the complaint raises concerns about weaknesses in SoundHound's internal financial reporting that may have affected its corporate acquisitions.

Key Allegations and Concerns

The investigation reveals several claims regarding SoundHound's internal controls:
1. Material Weaknesses in Financial Reporting: The company reportedly failed to accurately account for its acquisitions, indicating severe shortcomings in its financial management.
2. Inflated Goodwill Values: Following the Amelia Acquisition, it is alleged that the goodwill reported was overstated, necessitating corrections in future financial statements.
3. Delayed Financial Reporting: SoundHound disclosed on March 4, 2025, that it would not be able to file its Annual Report on time, due to complications in preparing the required financial statements, raising concerns about transparency.
4. Share Price Impact: Following this disclosure, SoundHound's stock price dropped significantly, highlighting the immediate financial repercussions of the internal issues.

Investors who are part of the potential class action are advised that their rights remain intact whether they decide to participate as lead plaintiffs or not. The complexities of the case underscore the need for timely communication and proactive measures among investors who may be affected by these allegations.

Seeking Investor Participation

Faruqi & Faruqi encourages all affected investors to reach out with any information they might possess regarding SoundHound's operations or conduct. This includes whistleblowers, former employees, and shareholders who may have insights into the company’s financial practices.

For additional information about the ongoing investigation into SoundHound AI, interested parties can visit Faruqi & Faruqi's official website or connect directly with one of their partners, Josh Wilson, through the provided contact numbers.

The firm emphasizes that all communications with them will be treated confidentially, and they are committed to protecting the interests of investors.

Conclusion

Investors with ties to SoundHound AI should view this investigation by Faruqi & Faruqi, LLP as a critical opportunity to explore their legal rights following the company’s troubling disclosures. Staying informed about the evolving situation is essential as more information becomes available leading up to the class action deadline.