Investors of SoundHound AI, Inc. Given Chance to Lead Class Action Lawsuit Amid Losses

SoundHound AI Investors Take Notice: Class Action Lawsuit Opportunity

In a recent announcement, Robbins Geller Rudman & Dowd LLP has raised an alert for purchasers of SoundHound AI, Inc. (NASDAQ: SOUN) securities. Investors who incurred significant financial losses between May 10, 2024, and March 3, 2025, are encouraged to consider leading a class action lawsuit against the company.

Background of the Case

The proposed lawsuit, titled Liles v. SoundHound AI, Inc., is formally recorded as No. 25-cv-02915 in the Northern District of California. The allegations detail violations of the Securities Exchange Act of 1934 by SoundHound and certain executives, challenging their financial disclosures during the specified class period.

The firm indicates that investors have until May 27, 2025, to seek appointment as lead plaintiffs in this significant case. Individuals interested in more details about how to initiate their participation can find more information on Robbins Geller's website or reach out to attorneys J.C. Sanchez and Jennifer N. Caringal directly.

Allegations Highlighted in the Lawsuit

The lawsuit contends various serious allegations revolving around material weaknesses in SoundHound’s internal controls over financial reporting. For instance, the filing points out that:
1. Inadequate Internal Controls: SoundHound purportedly failed to effectively manage its financial reporting, which impacted its ability to accurately account for corporate acquisitions.
2. Overstated Remediation Efforts: The company led investors to believe it had addressed weaknesses in its financial reporting when, in fact, this was not fully accurate.
3. Inflated Goodwill Reporting: Following its acquisition of Amelia Holdings, Inc., SoundHound is accused of reporting inflated goodwill that did not reflect the true acquisition value.
4. Delayed Financial Reporting: Due to these financial reporting complications, SoundHound communicated on March 4, 2025, that it would be unable to file its annual report on time, resulting in a nearly 6% drop in stock price after the announcement.

Steps for Potential Lead Plaintiffs

The Private Securities Litigation Reform Act of 1995 allows individual investors who purchased SoundHound securities during the designated period to step forward as lead plaintiffs. Typically, the lead plaintiff is an investor who has the most significant financial stake in the lawsuit and is representative of the group’s interests.

Acting as the lead plaintiff grants an individual considerable influence over the direction of the case, and the ability to select the law firm representing the class. However, it’s crucial to note that an investor's potential recovery does not depend on being the lead plaintiff.

About Robbins Geller Rudman & Dowd LLP

Robbins Geller possesses a prominent reputation in the field of securities fraud and shareholder litigation, being recognized as a leader in representing investors. In the past five years, they have ranked first in securing financial recoveries for investors, recovering over $2.5 billion in 2024 alone, which indicates their capability and commitment to advocating for investor rights.

For affected investors, this is an opportunity to engage in a collective legal approach that seeks justice and redress for their incurred losses. With a track record of successfully handling securities class actions, Robbins Geller stands as a viable partner for investors navigating this process.

For more details about the next steps, investors can refer to the links provided or contact Robbins Geller's dedicated legal team directly. This case represents a moment where investors can unite for a common cause amidst challenging times in their investment portfolios.

Contact Information

For further inquiries or to express interest in leading the class action, contact:
Robbins Geller Rudman & Dowd LLP
J.C. Sanchez, Jennifer N. Caringal
655 W. Broadway, Suite 1900
San Diego, CA 92101
Phone: 800-449-4900
Email: [email protected]

This latest development underscores the importance for investors to remain vigilant and proactive in the face of corporate governance and compliance issues, illustrating the essential role of legal recourse in protecting investor rights.