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Investigation into SoundHound AI: Legal Options for Investors

In recent developments, the legal firm Faruqi & Faruqi, LLP has announced its ongoing investigation into potential claims on behalf of investors of SoundHound AI, Inc. This scrutiny comes in light of disclosures from SoundHound that have raised concerns regarding the company’s financial integrity.

On March 4, 2025, SoundHound revealed in a filing with the U.S. Securities and Exchange Commission (SEC) that it would not be able to timely file its Annual Report for 2024 due to challenges associated with its accounting practices. This announcement directly implicated the company’s internal controls over financial reporting, suggesting material weaknesses that could dramatically affect its operations.

The implications of these findings are significant. For investors who endured losses exceeding $100,000 between May 10, 2024, and March 3, 2025, there may be legal grounds to seek compensation through a class action lawsuit. Faruqi & Faruqi is urging these investors to consider their rights and options carefully, especially with the approaching May 27, 2025 deadline for the appointment of a lead plaintiff in the class action case.

The firm emphasizes that the lead plaintiff is typically the investor who holds the largest financial stake in the case and represents the interests of the entire class. Unlike some legal scenarios, your decision to serve as a lead plaintiff does not impact your eligibility to share in any recovery from the lawsuit. This provides a unique opportunity for individuals who may feel overwhelmed by the legal process, as they can still contribute their voices without bearing the burden of leading the charge alone.

Moreover, the allegations against SoundHound point to several key issues. It is claimed that the company and its executives made misleading statements regarding its financial health. Specifically, there is a concern that SoundHound overestimated its ability to remedy its internal control weaknesses, thereby inflating its goodwill reported in relation to acquisitions, including the Amelia Acquisition.

On the day of the shocking SEC filing, SoundHound’s stock plummeted, falling by 5.81% as investors reacted to the startling revelation. The implications for current and future operations could be severe if the company continues to struggle with its financial disclosures and reporting requirements.

The firm’s investigation seeks not only to gather information for current investors but also to shed light on the corporate governance practices of SoundHound. It could provide essential insights into how corporate decisions may have led to these difficulties.

If you have relevant information about SoundHound's conduct, Faruqi & Faruqi encourages you to reach out. They are looking to hear from former employees, shareholders, or anyone with information that could assist in the investigation. Moreover, any whistleblowers may find this to be a particularly valuable opportunity to present their knowledge that could influence the course of litigation.

In summary, if you have experienced significant losses from your investments in SoundHound AI during the specified time frame, now is the time to assess your legal options. With critical deadlines approaching and various avenues available for recourse, staying informed and engaged can help potential claimants navigate this complex landscape. For personalized legal support, contacting Faruqi & Faruqi directly at 877-247-4292 may be a prudent step. They can provide insights tailored to your situation and help guide you through the available options.

As these developments unfold, keeping an eye on future announcements and recommendations from legal counsel will be essential for investors looking to protect their interests as SoundHound navigates these troubled waters.