A securities class action has been filed in the USDC – N.D.CA. against SoundHound AI, Inc. (SOUN) (“SoundHound” or the “Company”), on behalf of all persons and entities that purchased or otherwise acquired SoundHound securities between May 10, 2024, and March 3, 2025, both dates inclusive (the “Class Period”).
SoundHound provides an independent voice AI platform that purportedly enables businesses across industries to deliver high-quality conversational experiences to their customers.
The claim arises on March 4, 2025, when SoundHound disclosed in a filing with the SEC that it would be unable to timely file its Annual Report for 2024 (the “2024 10-K”).
The complaint alleges that throughout the Class Period, Defendants made materially false and misleading statements regarding the Company’s business, operations, and prospects. Specifically, Defendants made false and/or misleading statements and/or failed to disclose that:
(1) the material weaknesses in SoundHound’s internal controls over financial reporting impaired the Company’s ability to effectively account for corporate acquisitions;
(2) in addition, the Company overstated the extent to which it had remediated, and/or its ability to remediate, the material weaknesses in its internal controls over financial reporting;
(3) as a result of the foregoing material weaknesses, SoundHound’s reported goodwill following the Amelia Acquisition was inflated and would need to be corrected;
(4) further, SoundHound would likely require extra time and expense to effectively account for the SYNQ3 and Amelia Acquisitions;
(5) the foregoing increased the risk that the Company would be unable to timely file certain financial reports with the SEC; and
(6) as a result, the Company’s public statements were materially false and misleading at all relevant times, thereby harming investors.
On this news, SoundHound’s stock price fell $0.61 per share, or 5.86%, to close at $9.72 per share on March 4, 2025.
If you purchased SoundHound securities during the Class Period and would like to receive more information or join the action, please enter your contact information below for a FREE consultation and click “Submit Your Information”.