Class Action Lawsuit Filed Against SoundHound AI, Inc. Over Securities Fraud Allegations

SoundHound AI, Inc. Faces Class Action Lawsuit Over Securities Fraud

On April 13, 2025, Kessler Topaz Meltzer & Check, LLP, a law firm renowned for its work in securities class actions, made a critical announcement regarding SoundHound AI, Inc. (NASDAQ: SOUN). The firm disclosed that a class action lawsuit charging SoundHound with securities fraud has been filed on behalf of investors who purchased shares from May 10, 2024, to March 3, 2025. This lawsuit has raised red flags and is poised to have significant implications for SoundHound and its investors.

Allegations Against SoundHound AI

The crux of the lawsuit revolves around allegations that the company made numerous false and misleading statements during the class period. According to the complaint, these misstatements and omissions concerned the integrity of SoundHound's internal controls over financial reporting. Key points highlighted in the complaint include:

1. Weak Internal Controls: The lawsuit alleges that SoundHound did not adequately disclose material weaknesses in its internal controls. These deficiencies were said to significantly affect its capacity to effectively manage and report its corporate acquisitions.

2. Inflated Goodwill: In a critical claim, the complaint asserts that SoundHound overstated its ability to correct these internal control deficiencies. Specifically, it stated that the goodwill recorded after its acquisition of Amelia Holdings, Inc. in August 2024 was inflated and would require adjustments.

3. Increased Reporting Risks: The plaintiffs contend that due to these internal weaknesses, SoundHound faced heightened risks associated with its ability to file timely financial reports with the SEC.

4. Misleading Statements: The lawsuit argues that throughout the class period, SoundHound consistently issued public statements that were materially false and misleading regarding its operational and financial integrity.

Lead Plaintiff Application Process

The law firm outlines a specific process for potential lead plaintiffs in this case. Investors impacted by the alleged fraud must take action by filing a motion to be appointed as lead plaintiff no later than May 27, 2025. A lead plaintiff serves as a representative for other investors in guiding the litigation process. This role typically falls to the investor or small group of investors with the greatest financial stake in the outcome, thereby ensuring that class interests are adequately represented.

Kessler Topaz Meltzer & Check encourages SoundHound investors who believe they have suffered significant financial losses as a result of the company's alleged misconduct to reach out. Investors can consult the law firm for further information and guidance on how to proceed with their claims.

About Kessler Topaz Meltzer & Check, LLP

Kessler Topaz Meltzer & Check, LLP is well-versed in securities class actions and has a reputable track record. The firm has successfully secured billions for victims of corporate fraud and misconduct. Their commitment to protecting investors, consumers, and employees from financial abuses makes them a significant player in class action litigation across various jurisdictions.

For further details or to connect with the firm, investors can visit their official website or contact attorney Jonathan Naji at (484) 270-1453 or via email at [email protected]

In conclusion, the class action lawsuit against SoundHound AI serves as a timely reminder for investors to remain vigilant regarding the companies in which they invest. Transparency and accountability are essential in maintaining investor trust, particularly in the fast-paced technology sector where firms are under constant scrutiny.