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Investor Alert: Faruqi & Faruqi Investigates SoundHound AI

Amid growing concerns surrounding SoundHound AI, Inc. and its recent disclosures, Faruqi & Faruqi, LLP—a prominent national securities law firm—has initiated investigations to examine claims on behalf of investors. The nature of these inquiries follows alarming news about SoundHound’s financial reporting and internal controls, which may have adversely affected its investors.

Background on SoundHound AI

Established as an innovative company in the tech space, SoundHound AI has been recognized for its unique AI-driven voice recognition products. However, recent revelations concerning its financial practices have cast a shadow over its credibility. The firm is primarily listed on NASDAQ under the ticker symbol SOUN.

The Investigative Findings

Faruqi & Faruqi have specifically targeted the period between May 10, 2024, and March 3, 2025, discovering that the company allegedly made misleading statements regarding the effectiveness of its internal controls over financial reporting. Key allegations state that:
1. Material Weaknesses: SoundHound reportedly suffered from significant weaknesses in its internal controls, impairing its ability to properly account for acquisitions and financial transactions.
2. Overstated Remediation Efforts: The company may have overstated its capability to address these deficiencies, misleading investors about the health of its finances.
3. Inflated Goodwill Post-Acquisition: After the Amelia Acquisition, it appears that the goodwill reported by SoundHound was inflated, leading to inevitable corrections in future reporting.
4. Delayed Financial Reporting: SoundHound recently announced it would be unable to file its 2024 Annual Report on time, citing complexities in accounting for its recent acquisitions and newly identified weaknesses in internal controls.
5. Stock Price Decline: Following the announcement on March 4, 2025, SoundHound experienced a significant drop in stock price, losing $0.60 per share—a 5.81% drop, closing at $9.72.

Legal Implications and Steps Forward

As the investigation unfolds, Faruqi & Faruqi are rallying for potential lead plaintiffs to step forward. The firm emphasizes that any investor who acquired securities in SoundHound AI during the specified timeframe may be eligible to take part in a class action lawsuit. Interested parties are encouraged to reach out to the firm directly, highlighting the May 27, 2025, deadline to assume a lead plaintiff role in the ongoing litigation.

Call to Action for Investors

Investors who have dealt with losses linked to their SoundHound AI investments are urged to contact James (Josh) Wilson, a partner at Faruqi & Faruqi, directly at 877-247-4292 or 212-983-9330, extension 1310.
This outreach also extends to whistleblowers, former employees, or anyone possessing pertinent information regarding SoundHound AI’s conduct. Engaging with the firm could lead to significant legal recourse and compensation.

Conclusion

As the probe into SoundHound AI progresses, those affected have a critical window to assert their rights. As the legal landscape develops, vigilance and proactive measures will be vital for investors keen on safeguarding their interests amidst the unfolding situation. For continuous updates, following Faruqi & Faruqi on platforms like LinkedIn, X (formerly Twitter), or Facebook is advisable.

For more information regarding SoundHound AI's ongoing class action, visit Faruqi & Faruqi's official site.