Class Action Lawsuit Offers SOUN Investors Chance for Legal Recourse

SOUN Investors Have an Opportunity to Lead Securities Fraud Lawsuit

In recent developments, the Rosen Law Firm, a distinguished global law firm focusing on investor rights, has initiated a class action lawsuit concerning securities of SoundHound AI, Inc. This action targets investors who acquired securities during the period from May 10, 2024, to March 3, 2025. This class period defines those who may have been affected and potentially harmed by misrepresentations surrounding SoundHound AI's financial health.

How to Participate

Investors interested in joining the class action must act quickly, as the deadline for stepping forward as a lead plaintiff is set for May 27, 2025. The lead plaintiff role is crucial, as it involves directing the litigation process on behalf of all class members, ensuring that their interests are effectively represented.

Understanding the Lawsuit's Basis

The lawsuit claims that throughout the defined class period, the defendants engaged in making false and misleading statements about the company’s internal controls related to financial reporting. Specifically, the lawsuit outlines several key allegations:

1. Material Weaknesses in Internal Controls: It’s alleged that SoundHound failed to adequately disclose significant weaknesses in its financial reporting controls, which impacted the company's ability to properly account for acquisitions.

2. Inflated Goodwill Reporting: The reported goodwill following the Amelia Acquisition was overstated, a situation that necessitated subsequent corrections.

3. Increased Compliance Risks: The company is said to have overstated its capability to remediate these weaknesses, suggesting that delays and increased expenses would follow with the accounting for the SYNQ3 and Amelia acquisitions.

4. Timeliness of SEC Filings: The surrounding material weaknesses increased the risk of SoundHound's inability to file necessary reports with the SEC in a timely manner.

Because of these alleged misstatements and omissions, the investor plaintiffs assert that they suffered damages when the truth about SoundHound's financial practices became public.

Why Choose Rosen Law Firm?

Rosen Law Firm has a storied reputation, particularly in the realm of securities class actions. Notably, it was recognized for achieving the largest securities class action settlement against a Chinese company. Investors are encouraged to select competent legal counsel with a proven track record in overcoming similar challenges. The firm has successfully recovered hundreds of millions of dollars for its clients over the years, ranking consistently among the top firms in terms of settlement achievements.

For those who purchased SoundHound securities in the specified timeframe and seek accountability, this lawsuit offers a path to potentially recover losses without upfront legal fees, as compensation is typically structured through a contingency fee arrangement.

How to Get More Information

Interested investors can find additional details or commence their participation by visiting the Rosen Law Firm’s official website at rosenlegal.com or contacting Phillip Kim, Esq. directly at 866-767-3653. Those willing to join the class action are encouraged to act promptly, as the timeline for involvement is fast closing.

Final Note

It's vital to remember that a class has not yet been certified, meaning that participation does not equate to representation unless a lawyer is retained or unless you take formal steps to join the suit. Investors have the option to remain absent, but their potential for recovering any losses may hinge on timely action.

For continuous updates, interested parties may follow Rosen Law Firm on platforms like LinkedIn, Twitter, and Facebook. This proactive engagement ensures staying informed as the lawsuit progresses.

In summary, the opportunity for SoundHound investors to participate in this class action adds a layer of potential recourse against perceived mismanagement and lack of transparency within SoundHound AI, Inc. Amid market fluctuations, such legal actions represent an essential avenue for investors seeking justice and recompense.