#United States #Los Angeles #Securities Fraud #Frank R. Cruz #SoundHound

Investors of SoundHound AI, Inc. Have a Unique Opportunity

In the wake of allegations regarding financial misconduct, investors of SoundHound AI, Inc. (SOUN) are now invited to take part in a significant securities fraud class action lawsuit. This initiative comes directly from The Law Offices of Frank R. Cruz, which is reaching out to affected shareholders who have experienced losses of $50,000 or more.

What Are the Allegations?

The lawsuit highlights serious claims indicating that between May 10, 2024, and March 3, 2025, executives at SoundHound failed to disclose critical weaknesses in their internal financial reporting controls. According to the filed complaint, this omission significantly impaired the company’s capability to accurately account for its corporate acquisitions, particularly concerning two major acquisitions: SYNQ3 and Amelia.

Key Issues Raised in the Complaint:

1. Material Weaknesses: The company's internal controls were found lacking, leading to questionable accounting practices, which have raised doubts among investors.
2. Overstated Remediation: SoundHound allegedly overstated its efforts to remedy these weaknesses, misleading investors about its financial health.
3. Inflated Goodwill: The goodwill reported following the Amelia acquisition was inflated, suggesting that significant adjustments may be needed.
4. Increased Risk of SEC Delays: There was a rising risk that the company might not be able to file timely financial reports with the Securities and Exchange Commission (SEC) due to these internal issues.
5. Misleading Statements: Defendants are accused of making materially misleading positive statements about the company’s operations and future prospects.

This situation has created a unique environment for investors looking to reclaim losses and seeks accountability from the firm. The Law Offices of Frank R. Cruz are now urging individuals affected by these issues to evaluate their rights to partake in the class action.

How to Join the Class Action?

For those interested in participating in the lawsuit, it is crucial to act swiftly. The deadline to join is May 27, 2025, which marks the lead plaintiff deadline. Interested parties can contact The Law Offices of Frank R. Cruz through their email or hotline to obtain more information or initiate the process to join the class action.

Contact Information:

• - Email: info@frankcruzlaw.com
• - Phone: 310-914-5007
• - Website: frankcruzlaw.com

Inquiries should include personal details such as the mailing address, phone number, and information about shares purchased. It’s important to note that potential members of the class action are not required to take immediate action; they can choose to retain their own counsel or remain an absent member.

Final Thoughts

The SoundHound situation serves as a cautionary tale about the complexities of corporate governance and the obligations of management to transparently disclose important financial information. For investors feeling the impact of this crisis, joining the class action could represent a significant step towards regaining some financial stability. Acting promptly could lead to the potential for meaningful restitution, making it imperative for affected stakeholders to engage with the ongoing legal process.