Investors of SoundHound AI, Inc. Have A Chance to Lead a Securities Fraud Case

In a significant legal development, the Rosen Law Firm, renowned for championing investor rights worldwide, is calling all purchasers of SoundHound AI, Inc. (NASDAQ: SOUN, SOUNW) securities, acquired between May 10, 2024, and March 3, 2025, to be aware of an ongoing securities fraud lawsuit. The law firm's announcement highlights a crucial deadline — May 27, 2025 — for those interested in becoming lead plaintiffs in this class action.

What This Means for Investors

If you bought SoundHound's securities during the specified period, you could be eligible for compensation. The Rosen Law Firm underscores that investors will not need to incur any upfront costs, as they work on a contingency fee basis. This means that payment is only made if the case is successful, ensuring that cost is not a barrier for investors wanting to join the lawsuit.

How to Join the Class Action

To take part in this legal action, customers can visit the website at rosenlegal.com or get in touch directly with Phillip Kim, Esq. at 866-767-3653. Those who wish to act as lead plaintiffs must file their motions in court by the aforementioned deadline of May 27, 2025. This role not only aids personal victims but also represents the interests of fellow class members throughout the litigation process.

The Violations Alledged

The lawsuit reveals that throughout the specified period, SoundHound AI allegedly made numerous false and misleading statements regarding its internal financial controls. These misrepresentations included:

1. Material weaknesses in their internal controls that compromised their financial reporting quality.
2. An overstated ability to correct these weaknesses, leading to inaccuracies in financial acquisitions reported.
3. Inflated goodwill values post-Acquisition, particularly concerning the Amelia Acquisition, necessitating future corrections.
4. Increased challenges in accurately accounting for the SYNQ3 and Amelia acquisitions, potentially hindering timely SEC filings.

These issues collectively posed risks to investors, and when the actual circumstances became public, many suffered not only financial damage but potential loss of trust in the company’s management and financial practices.

Choosing the Right Legal Counsel

Selecting the right legal representation is critical, and Rosen Law Firm urges investors to choose a law firm with proven experience in handling securities class actions. Many firms merely act as intermediaries without the necessary litigation backing, which could lead to subpar representation. Rosen Law Firm, for instance, has a commendable track record, including the largest-ever securities class action settlement against a Chinese company and numerous successful recoveries for investors. They have been consistently ranked among the top law firms by ISS Securities Class Action Services for their accomplishments in this field.

The Road Ahead

Currently, the class has not been certified, meaning the legal journey is just beginning. Investors are not represented unless they retain legal counsel or opt to be part of the lead plaintiff team. It is essential for investors to act promptly and consider their options carefully to ensure they can participate in potential recoveries.

In conclusion, the situation surrounding SoundHound AI, Inc. highlights the importance of being aware of one's rights as an investor and the collective power of class action lawsuits in addressing corporate misconduct. With the deadline fast approaching, interested parties are urged to take immediate action.

Follow the Rosen Law Firm for updates via their social media channels for further information regarding this case and other developments in shareholder rights.

For more specific questions or assistance, contact the Rosen Law Firm directly at their New York office.