Securities Class Action Launched Against SoundHound AI, Inc. by Law Firm Kessler Topaz Meltzer & Check

Kessler Topaz Meltzer & Check, LLP Initiates Class Action Against SoundHound AI, Inc.

In a significant legal development for investors, the law firm Kessler Topaz Meltzer & Check, LLP has announced the filing of a securities class action lawsuit against SoundHound AI, Inc. (NASDAQ: SOUN). The lawsuit, which pertains to actions taken by the company during the time frame from May 10, 2024, to March 3, 2025, is aimed at individuals who purchased or otherwise acquired SoundHound securities within this period.

Details of the Class Action

The lawsuit highlights several allegations against SoundHound’s management regarding the transparency and accuracy of the company’s financial reporting. Investors are compelled to act quickly, as the deadline to file as a lead plaintiff in this case is set for May 27, 2025. A lead plaintiff represents the class of investors, guiding the litigation process and ensuring that their interests are front and center.

According to the allegations, during the specified period, SoundHound's management is accused of making misleading statements and failing to disclose crucial facts about the company's internal controls over financial reporting. The lawsuit suggests that these alleged misrepresentations included:

1. Material Weaknesses in Financial Controls: The complaint claims that the internal controls at SoundHound were materially weak, impacting the company's ability to accurately account for corporate acquisitions.
2. Inflated Goodwill Post-Acquisition: As a consequence of these internal control issues, SoundHound’s reported goodwill from its acquisition of Amelia Holdings, Inc. in August 2024 was allegedly inflated and would require correction.
3. Financial Reporting Delays: The lawsuit also suggests that due to the aforementioned weaknesses, SoundHound could struggle to file certain financial reports with the SEC on time, raising concerns about its compliance and operational integrity.

Why This Matters to Investors

For investors, this lawsuit is critical as it underlines the importance of corporate transparency and accountability. SoundHound’s actions, if proven true, could reflect systemic issues within the company, making their stock potentially riskier for future investments. Additionally, the lawsuit may assist affected investors in seeking legal recourse for their financial losses attributed to these alleged misconducts.

Kessler Topaz Meltzer & Check, LLP emphasizes its commitment to investor protection and encourages any individuals impacted by losses related to SoundHound to reach out for more information on participating in the lawsuit. Those interested can fill out forms provided on their website or contact attorney Jonathan Naji directly.

Legal Process and Next Steps

Investors contemplating joining the class action have the option to either step forward as a lead plaintiff or remain anonymous as an absent class member. A lead plaintiff typically holds the largest financial interest in the case and helps select legal counsel to represent the class. It is important to note that the outcome of the case will not be impacted by whether a shareholder chooses to step into the lead role or remain passive.

The firm is known for prosecuting significant class actions and has garnered a strong reputation by successfully recovering billions for victims of corporate fraud. As the lawsuit progresses, it could provide crucial insights into the business practices of SoundHound and ensure that such issues do not occur in the future.

Conclusion

This legal battle represents a challenging phase for SoundHound AI, Inc. and its investors. With allegations of misleading practices surfacing, stakeholders will be closely monitoring developments. Investors affected by these circumstances are strongly urged to stay informed and consider their options moving forward regarding their investments in SoundHound.