Wolf Haldenstein Initiates Class Action Against SoundHound AI, Unveiling Investor Concerns

Class Action Lawsuit Against SoundHound AI

In a significant development for investors, Wolf Haldenstein Adler Freeman & Herz LLP has announced the filing of a class action lawsuit against SoundHound AI, Inc. This legal action is aimed at various stakeholders who purchased or acquired SoundHound securities between May 10, 2024, and March 3, 2025. The core complaint highlights allegations that misleading statements regarding the company’s operations have caused substantial financial loss to investors during this period.

Allegations Against SoundHound AI

The complaint puts forth serious allegations against SoundHound AI and its officers. It claims that throughout the defined Class Period, the defendants issued materially false and misleading statements regarding the company’s business operations. Specifically, these statements pertain to unverified claims about SoundHound's capabilities and overall business health. Investors who relied on these assertions have reportedly encountered negative impacts on their investments.

On March 4, 2025, SoundHound filed a notice with the United States Securities and Exchange Commission (SEC), stating an inability to submit its Annual Report for 2024 (the 2024 10-K) on time due to complexities in accounting associated with acquisitions. The company revealed that inadequate internal controls led to material weaknesses in managing its financial reporting accurately.

Financial Reporting Issues

Following the initial admission of difficulties, the complete filing of the 2024 10-K on March 11, 2025, brought to light further details. For the first time, SoundHound acknowledged substantial deficiencies in its controls related to complex transactions, including acquisitions. This lack of effective internal controls impaired the company’s ability to execute proper accounting procedures, raising significant red flags for investors and stakeholders.

Wolf Haldenstein Adler Freeman & Herz LLP has underscored their commitment to pursuing justice for investors adversely affected by these alleged misrepresentations. With decades of experience in securities litigation, the law firm aims to protect the rights of the investing public and ensure those accountable are held responsible.

Call to Action for Investors

The firm encourages affected investors to consider this legal action seriously. Those who acquired SoundHound securities during the defined time frame have until May 27, 2025, to take action and express their interest in becoming the Lead Plaintiff for the class. This legal opportunity provides a channel for investors to potentially reclaim their losses by joining the case and making their voices heard in court.

Anyone with insights or further information related to this case is urged to contact Wolf Haldenstein Adler Freeman & Herz LLP for participation. They can be reached by phone at (800) 575-0735 or (212) 545-4774, or via email at [email protected]. Gregory Stone, the Director of Case and Financial Analysis, leads the communication outreach regarding this pivotal lawsuit.

Moving Forward

As the class action progresses, the implications of these allegations echo across the business and investment communities. Investors are reminded to remain vigilant and informed regarding their investments, particularly in the rapidly evolving technological landscape that companies like SoundHound operate within. The outcome of this case may have broader ramifications for similar companies and their disclosure practices in the future.