#USA #Los Angeles #Schall Law Firm #Securities Fraud #SoundHound AI

SoundHound AI Investors Targeted by Class Action Lawsuit

In a significant development for shareholders of SoundHound AI, Inc. (NASDAQ: SOUN), the Schall Law Firm has issued a reminder regarding an ongoing class action lawsuit against the technology company. This legal action is centered on allegations of securities fraud, asserting violations of the Securities Exchange Act of 1934.

Background of the Lawsuit

The lawsuit specifically targets investors who purchased SoundHound securities between May 10, 2024, and March 3, 2025. The law firm is urging these investors to contact them before May 27, 2025, to discuss their rights and potential participation in the case.

Brian Schall, representing the firm, highlighted that the suit stems from claims that SoundHound made false and misleading statements concerning its financial health and internal controls. According to the firm, these misrepresentations misled investors and contributed to financial damages once the truth was revealed.

Allegations Against SoundHound AI

The crux of the allegations involves the company's purported weaknesses in its internal controls over financial reporting. This failure reportedly affected its ability to accurately account for acquisitions, particularly following its buyout of Amelia. As a result, the company is accused of inflating its reported goodwill, which is a critical metric for assessing company value after acquisitions.

Additionally, SoundHound is alleged to have overstated its efforts to remediate these control weaknesses, misleading investors about its true financial state. More significantly, the inability to file certain financial reports appeared to signal deeper issues within the company, ultimately leading to investor losses when the full situation came to light.

How to Participate

Eligible investors interested in joining the lawsuit are encouraged to reach out to the Schall Law Firm directly. The firm is offering free consultations for those who have suffered financial losses due to the alleged misconduct. Contact can be made through their office at 310-301-3335 or via their website at www.schallfirm.com.

It is essential to note that the class in this lawsuit has not yet been certified, meaning that until such certification occurs, affected investors are not officially represented. Those who choose not to act will remain as absent class members and may miss the opportunity to recover their losses if the lawsuit is successful.

Conclusion

With its focus on protecting shareholder rights, the Schall Law Firm invites impacted investors to take action and explore their options regarding this lawsuit against SoundHound AI. As public scrutiny of corporate accountability grows, cases like this highlight the importance of transparency, especially in companies managing significant acquisitions and their corresponding liabilities. Investors are urged to act swiftly to ensure their rights are preserved in this ongoing legal battle.