SoundHound AI, Inc.

Submit Information

Company Name : SoundHound AI, Inc.

Stock Symbol : SOUN

Class Period : May 10, 2024 - March 3, 2025

Lead Plaintiff Motion Deadline : May 27, 2025


The Law Offices of Frank R. Cruz announces that a class action lawsuit has been filed on behalf of investors who purchased SoundHound AI, Inc. (“SoundHound” or the “Company”) (NASDAQ: SOUN) securities between May 10, 2024 and March 3, 2025, inclusive (the “Class Period”). SoundHound investors have until May 27, 2025 to file a lead plaintiff motion.

What Happened?

On March 4, 2025, SoundHound disclosed that it would be unable to timely file its 2024 financial report due to “the complexity of accounting for” the Company’s previously disclosed acquisitions of Synq3, Inc. and Amelia Holdings, Inc. Additionally, the Company stated that its previously-disclosed “material weaknesses in its internal control over financial reporting . . . continue to exist as of December 31, 2024.”

On this news, SoundHound’s stock price fell $0.61, or 5.9%, to close at $9.72 per share on March 4, 2025, thereby injuring investors.

Then, on March 11, 2025, SoundHound released its 2024 financial report, revealing that, as of December 31, 2024, “[t]he Company did not design and maintain effective controls related to the identification of and accounting for certain non-routine, unusual or complex transactions, including the accounting for complex financing transactions and acquisitions.” Additionally, the Company disclosed that it had “recorded adjustments to correct certain errors in the preliminary purchase price allocation that existed as of [August 6, 2024 (the “Amelia Acquisition Date”)],” which “decreased the contingent earnout consideration by $5.3 million, decreased the accounts payable by $3.7 million, decreased the accrued liabilities by $1.2 million, increased deferred revenue by $0.3 million and increased the deferred tax liabilities by $0.7 million”

What Is The Lawsuit About?

The complaint filed in this class action alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors 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) 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) 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, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis at all relevant times.

Submit Your Information

If you suffered a loss on your SoundHound AI, Inc. investments or would like to inquire about joining an action to recover your loss under the federal securities laws, please complete the form below. Please note that submission of this form does not by itself form an attorney-client relationship nor does filing out this form mean you have joined any lawsuit.

    Are you a current or former employee of the company?* YesNo

    Purchases

    +Additional Purchases

    Sales

    +Additional Sales

    © 2025 The Law Offices of Frank R. Cruz. A Professional Services Corporation.
    Website Designed & Developed By ITIFFY Consultants.