Legal Action Against SoundHound AI, Inc. Amid Securities Violations Claims

Class-Action Lawsuit Against SoundHound AI, Inc.

SoundHound AI, Inc. (NASDAQ: SOUN) is currently embroiled in a class-action lawsuit concerning violations of securities law. This notice, issued by The Gross Law Firm, serves to inform shareholders of their rights and possible claims in light of the allegations made against the company.

Allegations Overview

The complaint outlines serious allegations against SoundHound AI, pinpointing that between May 10, 2024, and March 3, 2025, the company made several materially false statements and misrepresentations regarding its internal financial controls. According to the complaint:

1. Internal Control Weaknesses: It is alleged that major weaknesses in SoundHound's internal controls hampered its ability to manage and disclose essential financial information effectively, particularly concerning corporate acquisitions.
2. Inflated Goodwill Reporting: Additionally, the company reportedly overstated its remediation efforts regarding these internal control weaknesses, leading to inflated goodwill recorded on its balance sheet after the Amelia Acquisition.
3. Risk of Delayed Filings: The concerns raised in the lawsuit suggest that the company's ability to timely file necessary financial reports with the Securities and Exchange Commission (SEC) was compromised.
4. Potential Costs and Time: As a consequence of the aforementioned issues, SoundHound is expected to incur additional costs and take extra time to rectify its financial reporting processes.

These allegations cast doubt on the integrity of the company's public statements and suggest they may not represent an accurate reflection of the company's financial health, which has significant implications for shareholder values.

What This Means for Shareholders

Shareholders of SoundHound AI who acquired shares during the specified class period are encouraged to take immediate action if they wish to participate in the legal proceedings. Depending on their registered timeline and the nature of the shares purchased, shareholders may have the right to appoint a lead plaintiff in the lawsuit. Being a lead plaintiff comes with no requirement to recover funds, yet it allows shareholders to play an influential role in the legal process against the company.

The deadline for registering as a shareholder affected by these events is May 27, 2025. Shareholders should not postpone their participation, as it is critical to secure their rights in this legal matter. Once registered, they will receive updates about the case's progress through a portfolio monitoring software set up by The Gross Law Firm.

How to Get Involved

To register, shareholders can visit the notice link provided by The Gross Law Firm. This process is designed to be straightforward, aiming to facilitate the involvement of affected shareholders in the case with minimal complications.

The Gross Law Firm emphasizes its commitment to defending investors' rights, particularly against deceptive and misleading corporate practices. Their dedication lies not only in pursuing legal avenues for recovery but also in promoting responsible corporate governance and accountability.

Individuals interested in this case or who need legal guidance should not hesitate to contact The Gross Law Firm through the provided communication channels. With a reputation for protecting the interests of investors, the firm aims to ensure all eligible shareholders are well-informed and adequately represented.

Conclusion

As this class-action lawsuit progresses, the developments will be closely followed by those within the investment community. The implications of this case may extend far beyond SoundHound AI, highlighting the critical importance of transparency and responsibility in corporate practices. Shareholders are urged to stay engaged and informed as the situation continues to unfold.