SoundHound AI Investors Have a Chance to Lead Class Action Lawsuit

Investor Alert: Class Action Lawsuit Potential for SoundHound AI, Inc.

In a significant development for investors of SoundHound AI, Inc. (NASDAQ: SOUN), a class action lawsuit is emerging on the horizon. The esteemed law firm, Robbins Geller Rudman & Dowd LLP, has announced that buyers or acquirers of SoundHound stock between May 10, 2024, and March 3, 2025, may have the opportunity to step forward as lead plaintiffs in this lawsuit until May 27, 2025. The impending legal action, known as the case of Liles v. SoundHound AI, Inc., filed in the Northern District of California, accuses SoundHound and several of its top executives of breaching the Securities Exchange Act of 1934.

Allegations Against SoundHound AI

The class action lawsuit claims that significant deficiencies in SoundHound’s internal controls over financial reporting hindered its ability to accurately account for corporate acquisitions. Key allegations include:
1. Material Weaknesses: It is stated that SoundHound failed to disclose material weaknesses in their financial reporting controls, impacting their acquisitions,
2. Inflated Goodwill: SoundHound allegedly overstated the goodwill stemming from their acquisition of Amelia Holdings, Inc., necessitating future corrections.
3. Financial Delays: The company is believed to have encountered substantial difficulties in filing essential financial reports with the U.S. Securities and Exchange Commission due to the complexities in accounting for its SYNQ3 and Amelia acquisitions.
4. Recent Disclosure and Stock Impact: On March 4, 2025, SoundHound revealed that it could not file its annual report on time due to these accounting complexities, resulting in a nearly 6% drop in their stock price.

Investors suffering substantial losses during the class period are encouraged to reach out and consider becoming the lead plaintiff. The role of the lead plaintiff typically goes to the investor with the highest financial stake who is representative of the wider group of affected investors. This plaintiff would manage the direction of the class action lawsuit and would have the autonomy to choose a law firm for representation.

About Robbins Geller

Robbins Geller Rudman & Dowd LLP stands as one of the foremost legal firms on an international scale for representing investors in securities fraud and shareholder litigation. Over recent years, it has consistently been recognized for securing substantial monetary relief for investors, including an impressive recovery of over $2.5 billion in 2024 across numerous securities-related cases. Specialized in handling securities class action lawsuits, the firm has gained a reputation for substantial recoveries, including landmark cases in history.

This class action lawsuit presents an opportunity for affected investors to not only seek justice but also potentially recover losses incurred due to the alleged mismanagement at SoundHound AI. To learn more about getting involved or for inquiries, investors can visit the Robbins Geller website or contact the firm directly.

With the deadline approaching, shareholders should act promptly to understand their rights and options in addressing the situation surrounding SoundHound AI, Inc.