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Securities Litigation Alert for SoundHound AI Investors

The legal landscape surrounding SoundHound AI, Inc. has seen a significant development that begs the attention of investors. Faruqi & Faruqi, LLP, a prominent player in the securities law industry, is currently investigating potential claims concerning SoundHound AI. This comes in light of alarming reports about the company and its financial disclosures.

If you are an investor who suffered losses exceeding $100,000 in SoundHound AI between May 10, 2024, and March 3, 2025, it is imperative that you consider your options seriously. The firm has made a public call for these investors to contact Josh Wilson, a partner at the firm, directly to discuss the potential legal options available.

Why This Matters

The allegations against SoundHound AI state that the company, along with its executives, might have violated federal securities laws. Specifically, the complaint suggests that SoundHound made misleading statements regarding its financial health and the internal controls concerning financial reporting. This issue was further complicated by claims that the company overstated its ability to manage certain acquisitions, leading investors to believe that the financial obligations and performances were sound when they were not.

The investigation targets assertions that:
1. There were existing material weaknesses in SoundHound's internal controls, impairing the accurate accounting of corporate acquisitions.
2. The company inflated goodwill values, especially concerning the Amelia Acquisition, which need correcting.
3. The reporting complexities from acquisitions would lead the company to miss certain filing deadlines with the SEC.

The culmination of these factors led to a decline in stock price on March 4, 2025, where shares plummeted by 5.81% following an announcement on the inability to file its Annual Report for 2024.

Your Legal Rights

Investors are reminded of the May 27, 2025 deadline to apply for the role of lead plaintiff in this federal securities class action lawsuit against the company. It is crucial for affected individuals to act promptly as this legal designation is important for directing and overseeing the litigation process on behalf of all impacted investors. However, interested parties have the choice to either step forward as lead plaintiffs or remain as absent class members—both options will enable them to claim any eventual recovery share.

For those affected or who have information related to the case, engaging with Faruqi & Faruqi, LLP is highly recommended. The firm particularly encourages anyone, including whistleblowers and former employees, to provide insights that could bolster the investigation. Your contributions could be vital in shaping the legal narrative surrounding SoundHound AI.

Given the significant stakes involved, it's in the best interest of investors who might have been misled to become informed and explore their legal options. For further information on the class action regarding SoundHound AI, or to initiate a discussion regarding your situation, reach out directly to Josh Wilson at Faruqi & Faruqi via the phone numbers provided: 877-247-4292 or 212-983-9330 (Ext. 1310).

Keep informed about further developments by following the latest updates from a reputable legal perspective. Remember that taking timely action could significantly affect the outcome of your investments.

This article is meant for informational purposes only and does not serve as legal advice.