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SoundHound AI Shareholders: Important Information About Class Action

In light of recent developments surrounding SoundHound AI, Inc. (NASDAQ: SOUN), Robbins LLP is reminding all shareholders to consider participating in a class action lawsuit. This action is designed for individuals and entities that have purchased or otherwise acquired securities of SoundHound between May 10, 2024, and March 3, 2025. The purpose of this class action is to address serious allegations regarding the company's internal controls and financial reporting.

Understanding the Allegations Against SoundHound AI

The core of the allegations asserts that SoundHound AI failed to properly disclose material weaknesses in its internal controls over financial reporting during the aforementioned period. These deficiencies raised significant concerns about the company’s capacity to manage corporate acquisitions, particularly in accounting matters. Here’s a summary of the major allegations put forward:

1. Disclosure Issues: The company did not inform investors that its internal controls were insufficient to manage corporate acquisitions effectively.
2. Inflated Financial Reporting: SoundHound reportedly overstated its ability to remedy previously identified weaknesses in its financial reporting practices.
3. Goodwill Concerns: Following its acquisition of Amelia, the reported goodwill associated with this acquisition was deemed inflated and requiring correction.
4. Increased Financial Scrutiny: It was revealed that SoundHound would require additional time and resources to address accounting for the SYNQ3 and Amelia acquisitions.
5. Delay in SEC Filings: The company acknowledged that it would not be able to timely file its Annual Report for 2024 due to these ongoing complexities.

On March 4, 2025, SoundHound’s disclosure caused a notable decline in its stock price, with a drop of 5.86%, leaving shareholders concerned about their investment.

What Shareholders Need to Know

Shareholders who bought stock during the class action period may have grounds to join the lawsuit and potentially seek recovery. It’s essential for interested investors to understand that becoming a lead plaintiff—a representative party in the lawsuit—would entail taking an active role in litigation. However, participation in the case is not a requirement for potential recovery of losses.

Robbins LLP highlights that the firm operates on a contingency fee basis. This means shareholders incur no legal fees unless they secure a recovery from the lawsuit.

Your Next Steps

For those interested in learning more about their rights and options, Robbins LLP recommends contacting them directly. Potential participants can fill out a form or reach out via email to attorney Aaron Dumas, Jr. Additionally, calls can be made to their helpline at (800) 350-6003.

This is a pivotal moment for SoundHound AI investors. By staying informed and proactive, shareholders can make decisions that may protect their investments in the long run. Consider signing up for alerts from Robbins LLP to monitor developments regarding this class action lawsuit, as well as other important updates regarding shareholder rights and corporate governance.

About Robbins LLP

Robbins LLP is a prominent name in shareholder rights litigation, with a record of advocating for investors since 2002. The firm is committed to ensuring that corporate executives are held accountable for their actions and that shareholders can reclaim losses incurred due to corporate misconduct.

Conclusion

In summary, if you are a shareholder of SoundHound AI, consider reaching out to Robbins LLP for guidance on participating in this important class action lawsuit. Stay informed, and take the necessary steps to protect your investment rights today.