SAN DIEGO, April 02, 2025 (GLOBE NEWSWIRE) — Robbins LLP reminds stockholders that a class action was filed on behalf of all persons and entities that purchased or otherwise acquired SoundHound AI, Inc. (NASDAQ: SOUN) securities between May 10, 2024 and March 3, 2025. SoundHound provides an independent voice artificial intelligence (“AI”) platform that purportedly enables businesses across industries to deliver high-quality conversational experiences to their customers.
For more information, submit a form, email attorney Aaron Dumas, Jr., or give us a call at (800) 350-6003.
The Allegations: Robbins LLP is Investigating Allegations that SoundHound AI, Inc. (SOUN) Failed to Disclose it Lacked Effective Controls Relating to Corporate Acquisitions
According to the complaint, during the class period, defendants failed to disclose that: (i) the material weaknesses in SoundHound’s internal controls over financial reporting impaired the Company’s ability to effectively account for corporate acquisitions; (ii) 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; (iii) as a result of the foregoing material weaknesses, SoundHound’s reported goodwill following the Amelia Acquisition was inflated and would need to be corrected; (iv) further, SoundHound would likely require extra time and expense to effectively account for the SYNQ3 and Amelia Acquisitions; and (v) the foregoing increased the risk that the Company would be unable to timely file certain financial reports with the SEC.
On March 4, 2025, SoundHound disclosed in a filing with the SEC that it would be unable to timely file its Annual Report for 2024. SoundHound stated that “[d]ue to the complexity of accounting for [the SYNQ3 and Amelia Acquisitions], the Company require[d] additional time to prepare financial statements and accompanying notes” and that it “ha[d] identified material weaknesses in its internal control over financial reporting.” 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.
What Now: You may be eligible to participate in the class action against SoundHound AI, Inc. Shareholders who want to serve as lead plaintiff for the class should contact Robbins LLP. A lead plaintiff is a representative party who acts on behalf of other class members in directing the litigation. You do not have to participate in the case to be eligible for a recovery. If you choose to take no action, you can remain an absent class member. For more information, click here.
All representation is on a contingency fee basis. Shareholders pay no fees or expenses.
About Robbins LLP: A recognized leader in shareholder rights litigation, the attorneys and staff of Robbins LLP have been dedicated to helping shareholders recover losses, improve corporate governance structures, and hold company executives accountable for their wrongdoing since 2002.
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