#United States #New York #Charles C. Foti #Kahn Swick #SoundHound AI

Investigation of SoundHound AI Initiated by Kahn Swick & Foti

In recent developments, the law firm Kahn Swick & Foti, LLC (KSF) has announced the initiation of an investigation into SoundHound AI, Inc. (NasdaqGM: SOUN). Charles C. Foti, Jr., the firm’s partner and former Attorney General of Louisiana, leads this inquiry. The investigation aims to determine whether the company’s officers and directors have potentially violated their fiduciary duties to shareholders or breached state or federal regulations.

The spotlight on SoundHound AI intensified following its acquisition of SYNQ3 and Amelia Holdings, Inc. in January 2024, which was touted as a pivotal move for the company. However, this growth came with complications. On March 4, 2025, SoundHound disclosed an inability to file its 2024 Annual Report on time, citing the complicated accounting of the aforementioned acquisitions. This led to the revelation of serious internal control deficiencies regarding financial reporting, raising the alarm among shareholders and regulatory bodies.

A week later, the company filed its 2024 10-K form, which included restated financial information. For the first time, it was acknowledged that ineffective controls were interfering with proper accounting practices, particularly concerning corporate acquisitions. These disclosures are significant, as they highlighted vulnerabilities in the company’s governance structure and raised concerns about transparency and accountability within SoundHound AI's leadership.

As a consequence of these issues, certain executives and the company itself are now embroiled in a securities class-action lawsuit. This suit alleges that they failed to disclose critical information during the class period, a move that potentially violates federal securities laws. The ongoing legal battle is a reminder of the scrutiny that publicly traded companies face regarding their financial practices and disclosures, particularly in the wake of significant acquisitions.

The investigation by KSF seeks to uncover whether the actions of SoundHound’s leadership amount to misconduct that would further jeopardize the interests of its shareholders. Given the serious nature of the allegations and the ongoing litigation, KSF is actively looking for individuals with information relevant to the investigation. Shareholders of SoundHound who have retained their shares for a long time and wish to discuss their legal rights are encouraged to reach out to KSF at no cost. They can contact the firm via the toll-free number provided, or by visiting the KSF website for more information.

About Kahn Swick & Foti, LLC

Kahn Swick & Foti is recognized as a top-tier law firm specializing in securities litigation. In 2023, the firm was ranked among the top 10 nationally by SCAS based on total settlement value. It represents various clients, including both public and private institutional investors as well as retail investors, focusing on recovering losses resulting from corporate fraud and mismanagement. With offices strategically positioned across major U.S. cities and a representative office in Luxembourg, KSF is well-equipped to handle complex securities cases. For those interested in learning more about the firm, detailed information is available on their website.