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Legal Action for SoundHound AI Investors: Understanding the Class Action

In a significant move for investors, law firm Levi & Korsinsky, LLP has announced a class action lawsuit on behalf of shareholders of SoundHound AI, Inc. (NASDAQ: SOUN). The lawsuit arises from allegations of securities fraud impacting investors between May 10, 2024, and March 3, 2025. This article aims to provide a detailed overview of the situation, including the claims made, potential implications for shareholders, and the next steps in the legal process.

Background of the Case

The complaint filed by Levi & Korsinsky outlines several critical issues that may have harmed investors:

• - Allegations indicate that SoundHound AI failed to address material weaknesses in their internal controls for financial reporting. Such oversights may have impaired their ability to accurately account for corporate acquisitions, leading to inflated financial statements.
• - Specifically, the complaint claims that the company overstated its remediation efforts regarding these weaknesses, suggesting a systemic issue in financial management and reporting.
• - The lawsuit identifies concerns regarding the goodwill reported following the Amelia Acquisition, which may have been inaccurately inflated due to the aforementioned issues. This raises questions about the financial integrity of SoundHound AI following recent acquisitions, including its dealings with SYNQ3 and Amelia.

These serious allegations culminate in a potential risk for the company, as they may lead to delays in filing essential financial reports with the SEC, affecting investor trust and market valuation.

Class Definition

The class definition for the lawsuit seeks to encompass individuals who purchased or otherwise acquired SoundHound AI securities during the specified period. If you have experienced financial losses due to these alleged fraud issues, you may be eligible to join this class action.

Important Dates

Shareholders affected by this situation should note that the deadline to request the Court to appoint you as lead plaintiff is May 27, 2025. While being the lead plaintiff may offer advantages, participation in the recovery does not depend on this designation.

No Costs to Class Members

One of the most striking aspects of this class action is that, as a class member, you may be entitled to compensation without any direct financial burden. Levi & Korsinsky operates on a contingency basis, meaning they only receive payment if you do. This assured approach can encourage more investors to participate without fear of incurring additional costs during the legal process.

Why Choose Levi & Korsinsky?

Levi & Korsinsky has a substantial history in securities litigation, boasting over two decades of experience and a proven track record of securing millions for investors. Their commitment to protecting shareholder rights is evidenced by their recognition as a top firm by the ISS Securities Class Action Services for consecutive years. The firm has a dedicated team ready to assist investors in navigating this legal challenge.

Next Steps for Investors

As this class action unfolds, affected shareholders are encouraged to connect with Levi & Korsinsky for further details and to explore their options. Interested investors can reach out via email or telephone, as listed in the court documents. It is essential to stay informed about the developments of this case, as its outcomes may significantly impact the future of SoundHound AI and its investors.

In conclusion, this class action serves as a crucial step for those affected by the alleged misconduct of SoundHound AI, Inc. As the legal proceedings advance, stakeholders must remain vigilant and take appropriate actions to secure their interests.

For more information and to submit your details for participation in the class action, please visit Levi & Korsinsky's official page or contact the firm directly.