- SoundHound AI (SOUN, Financial) is facing a class action lawsuit for allegedly making false and misleading statements.
- The company disclosed material weaknesses in internal financial reporting controls.
- Affected investors must act by May 27, 2025, to join the lawsuit as Lead Plaintiff.
SoundHound AI (SOUN) shareholders are encouraged to contact Wolf Haldenstein Adler Freeman & Herz LLP regarding a class action lawsuit filed on behalf of investors who acquired SoundHound securities between May 10, 2024, and March 3, 2025. The lawsuit claims the company made materially false and misleading statements about its business operations during this period.
This legal action comes after SoundHound's disclosure on March 4, 2025, that it was unable to file its 2024 Annual Report on time. The delay was attributed to accounting complexities related to the acquisitions of SYNQ3 and Amelia. Additionally, the company revealed there were material weaknesses in its internal controls over financial reporting.
On March 11, 2025, SoundHound filed its 2024 10-K, admitting that effective controls for identifying and accounting for non-routine, unusual, or complex transactions, including acquisitions, were lacking. This revelation raises concerns over the company's ability to manage complex financial transactions adequately.
Investors who were impacted by these issues have until May 27, 2025, to request appointment as Lead Plaintiff in the class action. This represents a critical opportunity for shareholders to seek redress for the alleged securities law violations by SoundHound AI (SOUN, Financial).
