Investors of SoundHound AI, Inc. Given Chance to Lead Fraud Lawsuit Against Company
Investors of SoundHound AI, Inc. Given Chance to Lead Fraud Lawsuit Against Company
In a significant announcement this week, Glancy Prongay & Murray LLP has revealed an opportunity for shareholders of SoundHound AI, Inc. (NASDAQ: SOUN) who suffered losses to step forward as lead plaintiffs in a compelling securities fraud class action lawsuit. The loss threshold for participating investors is set at $50,000 or more, encouraging those affected by the financial downturn to seek legal recourse.
What Led to the Lawsuit?
The lawsuit revolves around several alleged failures on the part of SoundHound's executives to adequately disclose vital financial information to shareholders. Between May 10, 2024, and March 3, 2025, the company reportedly misrepresented the effectiveness of its internal financial controls, claiming they were adequate when, in fact, they were not. This mismanagement led to inflated goodwill figures after its acquisition of Amelia and inaccurate financial representations regarding SYNQ3 and other past acquisitions.
The specific concerns include:
1. Material weaknesses in SoundHound's internal controls over financial reporting.
2. Inaccurate claims regarding the company's ability to address those weaknesses.
3. Inflated goodwill reported following corporate acquisitions, necessitating future adjustments.
4. Increased costs and delays associated with filing financial reports with the SEC due to these control issues.
5. Misleading positive statements about the company’s business, operational efficiency, and growth prospects.
Timelines and Next Steps
Investors interested in leading this class action are urged to contact Glancy Prongay & Murray LLP by May 27, 2025, which marks the deadline to join as a lead plaintiff. Those who wish to participate or seek further information can connect with the firm, detailing their contact information as well as the number of shares purchased in SoundHound.
Additionally, investors are reminded that it's not necessary to take any action right now to be a part of the class action lawsuit. They may choose to engage their legal counsel or remain as passive participants.
Contact Information
For more information regarding this action or any other related inquiries, interested parties should reach out to Charles Linehan at Glancy Prongay & Murray LLP, located at 1925 Century Park East, Suite 2100, Los Angeles, California 90067. For email inquiries, reaching out at [email protected] is advised, while one can also dial 310-201-9150 or the toll-free number 888-773-9224.
In a landscape increasingly fraught with inconsistencies and misleading financial reports, this class action lawsuit represents a crucial moment for investors. It serves not only to potentially recover incurred losses but also to hold the relevant parties accountable for their actions. This unfolding story will undoubtedly draw attention to corporate governance at SoundHound and similar tech entities as stakeholders eagerly await the developments ahead.
As this situation progresses, stakeholders, investors, and industry watchers alike will be keen to monitor the outcomes this lawsuit may present. Protecting shareholder rights in the wake of alleged discrepancies is a key focus for advocates of market transparency and accountability.
Stay tuned for further updates on this developing story as the legal proceedings unfold.
Topics Financial Services & Investing）
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