Investors of SoundHound AI, Inc. Have Opportunity for Class Action Lawsuit Against the Company

Class Action Lawsuit Opportunity for SoundHound AI, Inc. Investors

Investors who purchased or acquired securities of SoundHound AI, Inc. (NASDAQ: SOUN) between May 10, 2024, and March 3, 2025, find themselves at a crucial juncture as they face significant financial losses following alarming allegations against the company. They now have the chance to lead a class action lawsuit aimed at seeking reparations for these losses. The deadline for potential lead plaintiffs to step forward is set for Tuesday, May 27, 2025.

Robbins Geller Rudman & Dowd LLP made the announcement, highlighting the urgency for investors affected by the alleged mismanagement and fraudulent activities by SoundHound and its executives. The lawsuit, Liles v. SoundHound AI, Inc., filed in the Northern District of California under case number 25-cv-02915, accuses SoundHound of violating the Securities Exchange Act of 1934.

Allegations Against SoundHound AI

The allegations lodged against SoundHound paint a troubling picture of corporate governance. Key issues highlighted include:
1. Material Weaknesses: The company supposedly had significant weaknesses in its internal financial reporting controls, hampering its capacity to accurately account for its corporate acquisitions.
2. Misleading Statements: Throughout the class period, SoundHound allegedly made false statements or failed to disclose critical information regarding its internal controls, leading to misrepresentation of its financial health.
3. Inflated Goodwill: The lawsuit asserts that due to these internal issues, SoundHound overstated the value of goodwill following its merger with Amelia Holdings, Inc., an accounting practice that necessitates correction.
4. Delayed Financial Reporting: On March 4, 2025, SoundHound publicly stated its inability to file its annual report on time for 2024, citing complexities related to recent acquisitions, which caused the share price to take a significant hit.

These revelations elicited a quick response in the stock market, with the price of SoundHound shares plummeting nearly 6% following the disclosures. Investors are now left weighing their options and considering action.

The Role of the Lead Plaintiff

The Private Securities Litigation Reform Act of 1995 provides an avenue for any investors who experienced financial losses during the class period to step forward as lead plaintiffs. The lead plaintiff will represent the interests of other class members in directing the lawsuit and has the option to select a legal firm that they trust to handle the case.

Notably, participation as a lead plaintiff does not limit an investor's ability to obtain a share of any potential recovery that may arise from a successful outcome of the class action lawsuit. Thus, even those who choose not to take the lead can still benefit from the lawsuit's results.

Robbins Geller's Track Record

Robbins Geller Rudman & Dowd LLP has established itself as a formidable competitor in securities fraud litigation, often leading to significant recoveries for victims of fraudulent practices. According to their reports, the firm secured over $2.5 billion in 2024 for investors affected by securities fraud, outperforming its peers combined. With a team of 200 attorneys spread across 10 offices, Robbins Geller is a powerful ally for those looking to reclaim their losses.

How to Participate

Interested investors can find more information about joining the class action lawsuit by visiting Robbins Geller's official site. Alternatively, they can reach out directly to attorneys J.C. Sanchez or Jennifer N. Caringal by calling 800-449-4900 or emailing [email protected].

As the deadline approaches, many investors are urged to review their options carefully. This lawsuit marks an opportunity not only to recover losses but to hold corporations accountable for their actions in the marketplace. Investors should act swiftly to ensure their voices are heard as they navigate this challenging situation.