SoundHound AI Faces Class Action Lawsuit Over Alleged Financial Misrepresentation

INVESTOR ALERT: Pomerantz Law Firm Announces the Filing of a Class Action Against SoundHound AI, Inc. and Certain Officers - SOUN - SoundHound AI (NASDAQ:SOUN)

NEW YORK, April 03, 2025 (GLOBE NEWSWIRE) -- Pomerantz LLP announces that a class action lawsuit has been filed against SoundHound AI, Inc. ("SoundHound"" or the "Company") SOUN and certain officers. The class action, filed in the United States District Court for the Northern District of California, and docketed under 25-cv-02915, is on behalf of a class consisting of all persons and entities other than Defendants that purchased or otherwise acquired SoundHound securities between May 10, 2024 and March 3, 2025, both dates inclusive (the "Class Period"), seeking to recover damages caused by Defendants' violations of the federal securities laws and to pursue remedies under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 (the "Exchange Act") and Rule 10b-5 promulgated thereunder, against the Company and certain of its top officials. If you are an investor who purchased or otherwise acquired SoundHound securities during the Class Period, you have until May 27, 2025 to ask the Court to appoint you as Lead Plaintiff for the class. A copy of the Complaint can be obtained at www.pomerantzlaw.com. To discuss this action, contact Danielle Peyton at [email protected] or 646-581-9980 (or 888.4-POMLAW), toll-free, Ext. 7980. Those who inquire by e-mail are encouraged to include their mailing address, telephone number, and the number of shares purchased. [Click here for information about joining the class action] SoundHound provides an independent voice artificial intelligence ("AI") platform that purportedly enables businesses across industries to deliver high-quality conversational experiences to their customers. At all relevant times, the Company has identified material weaknesses in its internal control over financial reporting. Specifically, SoundHound has acknowledged that it has "lacked sufficient oversight of activities related to its internal control over financial reporting," and that due to "rapid business growth," "changes to existing controls or the implementation of new controls have not been sufficient to respond to changes to the risks of material misstatement to financial reporting, which [has] resulted in the Company not designing and maintaining effective controls related to substantially all accounts and disclosures," including "effective controls to verify appropriate accounting for complex financing transactions." However, SoundHound has consistently represented that it is "in the process of designing and implementing controls and taking other actions to remediate" the foregoing material weaknesses. In January 2024, SoundHound acquired all of the issued and outstanding equity of SYNQ3, a provider of voice AI and other technology solutions to the restaurant industry, for total purchase consideration of $15.8 million (the "SYNQ3 Acquisition"). Then, in August 2024, the Company acquired Amelia Holdings, Inc. ("Amelia"), a privately-held conversational AI software company involved in the development and delivery of AI and automation solutions and related services, for a "[p]urchase price of $80M in cash and equity, with partial payment and assumption of Amelia's debt, as well as future earnout potential aligned to revenue milestone achievements" (the "Amelia Acquisition"). SoundHound has stated that these "strategic acquisitions" contributed to the Company's "breakthrough year" in 2024, "expanding [its] leadership position in voice and conversational AI." 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: (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; (v) the foregoing increased the risk that the Company would be unable to timely file certain financial reports with the United States Securities and Exchange Commission ("SEC"); and (vi) as a result, the Company's public statements were materially false and misleading at all relevant times. 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 (the "2024 10-K"). 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. Then, on March 11, 2025, SoundHound filed its 2024 10-K. In the 2024 10-K, SoundHound stated, in relevant part, 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" -- disclosing for the first time that the Company's lack of effective controls was impairing its ability to account for corporate acquisitions. Further, in discussing the Amelia Acquisition, the 2024 10-K stated, in relevant part, that, during the year ended December 31, 2024, as a result of the foregoing material weaknesses related to the Company's ability to account for corporate acquisitions, SoundHound "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" and "[a]s a result of the adjusted [Amelia Acquisition Date] fair value of contingent earnout consideration recognized, assets acquired and liabilities assumed, we recorded a decrease of $9.3 million to the goodwill recognized." Pomerantz LLP, with offices in New York, Chicago, Los Angeles, London, Paris, and Tel Aviv, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, Pomerantz pioneered the field of securities class actions. Today, more than 85 years later, Pomerantz continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered billions of dollars in damages awards on behalf of class members. See www.pomlaw.com. Attorney advertising. Prior results do not guarantee similar outcomes. CONTACT: Danielle Peyton Pomerantz LLP [email protected] 646-581-9980 ext. 7980 SOUNSoundHound AI Inc$7.96-8.08%Stock Score Locked: Want to See it? Benzinga Rankings give you vital metrics on any stock - anytime. 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Shareholders that lost money on SoundHound AI, Inc.(SOUN) Urged to Join Class Action - Contact Levi & Korsinsky to Learn More - SoundHound AI (NASDAQ:SOUN)

NEW YORK, April 04, 2025 (GLOBE NEWSWIRE) -- Levi & Korsinsky, LLP notifies investors in SoundHound AI, Inc. ("SoundHound AI, Inc." or the "Company") SOUN of a class action securities lawsuit. CLASS DEFINITION: The lawsuit seeks to recover losses on behalf of SoundHound AI, Inc. investors who were adversely affected by alleged securities fraud between May 10, 2024 and March 3, 2025. Follow the link below to get more information and be contacted by a member of our team: https://zlk.com/pslra-1/soundhound-ai-inc-lawsuit-submission-form?prid=140731&wire=3 SOUN investors may also contact Joseph E. Levi, Esq. via email at [email protected] or by telephone at (212) 363-7500. CASE DETAILS: The filed complaint alleges that defendants made false statements and/or concealed 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; (v) the foregoing increased the risk that the Company would be unable to timely file certain financial reports with the SEC; and (vi) as a result, the Company's public statements were materially false and misleading at all relevant times. WHAT'S NEXT? If you suffered a loss in SoundHound AI, Inc. during the relevant time frame, you have until May 27, 2025 to request that the Court appoint you as lead plaintiff. Your ability to share in any recovery doesn't require that you serve as a lead plaintiff. NO COST TO YOU: If you are a class member, you may be entitled to compensation without payment of any out-of-pocket costs or fees. There is no cost or obligation to participate. WHY LEVI & KORSINSKY: Over the past 20 years, the team at Levi & Korsinsky has secured hundreds of millions of dollars for aggrieved shareholders and built a track record of winning high-stakes cases. Our firm has extensive expertise representing investors in complex securities litigation and a team of over 70 employees to serve our clients. For seven years in a row, Levi & Korsinsky has ranked in ISS Securities Class Action Services' Top 50 Report as one of the top securities litigation firms in the United States. CONTACT: Levi & Korsinsky, LLP Joseph E. Levi, Esq. Ed Korsinsky, Esq. 33 Whitehall Street, 17th Floor New York, NY 10004 [email protected] Tel: (212) 363-7500 Fax: (212) 363-7171 www.zlk.com SOUNSoundHound AI Inc$7.15-13.8%Stock Score Locked: Want to See it? Benzinga Rankings give you vital metrics on any stock - anytime. Reveal Full ScoreEdge RankingsMomentum96.96Growth82.87Quality-Value7.74Price TrendShortMediumLongOverviewMarket News and Data brought to you by Benzinga APIs

ROSEN, HIGHLY REGARDED INVESTOR COUNSEL, Encourages SoundHound AI, Inc. Investors to Secure Counsel Before Important Deadline in Securities Class Action - SOUN, SOUNW - SoundHound AI (NASDAQ:SOUN)

NEW YORK, April 05, 2025 (GLOBE NEWSWIRE) -- WHY: Rosen Law Firm, a global investor rights law firm, announces the filing of a class action on behalf of purchasers of securities of SoundHound AI, Inc. SOUN SOUNW)) between May 10, 2024 and March 3, 2025, both dates inclusive (the "Class Period"). If you wish to serve as lead plaintiff, you must move the Court no later than May 27, 2025. SO WHAT: If you purchased SoundHound securities during the Class Period you may be entitled to compensation without payment of any out of pocket fees or costs through a contingency fee arrangement. WHAT TO DO NEXT: To join the SoundHound class action, go to https://rosenlegal.com/submit-form/?case_id=36267 or call Phillip Kim, Esq. at 866-767-3653 or email [email protected] for more information. A class action lawsuit has already been filed. If you wish to serve as lead plaintiff, you must move the Court no later than May 27, 2025. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. WHY ROSEN LAW: We encourage investors to select qualified counsel with a track record of success in leadership roles. Often, firms issuing notices do not have comparable experience, resources, or any meaningful peer recognition. Rosen Law Firm achieved the largest ever securities class action settlement against a Chinese Company at the time. Rosen Law Firm was Ranked No. 1 by ISS Securities Class Action Services for number of securities class action settlements in 2017. The firm has been ranked in the top 4 each year since 2013 and has recovered hundreds of millions of dollars for investors. In 2019 alone the firm secured over $438 million for investors. In 2020, founding partner Laurence Rosen was named by law360 as a Titan of Plaintiffs' Bar. Many of the firm's attorneys have been recognized by Lawdragon and Super Lawyers. DETAILS OF THE CASE: According to the lawsuit, throughout the Class Period, defendants made false and misleading statements and/or failed to disclose that: (1) the material weaknesses in SoundHound's internal controls over financial reporting impaired SoundHound's ability to effectively account for corporate acquisitions; (2) in addition, SoundHound 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 SoundHound would be unable to timely file certain financial reports with the SEC; and (6) as a result, SoundHound's public statements were materially false and misleading at all relevant times. When the true details entered the market, the lawsuit claims that investors suffered damages. To join the SoundHound class action, go to https://rosenlegal.com/submit-form/?case_id=36267 or call Phillip Kim, Esq. at 866-767-3653 or email [email protected] for more information. No Class Has Been Certified. Until a class is certified, you are not represented by counsel unless you retain one. You may select counsel of your choice. You may also remain an absent class member and do nothing at this point. An investor's ability to share in any potential future recovery is not dependent upon serving as lead plaintiff. Follow us for updates on LinkedIn: https://www.linkedin.com/company/the-rosen-law-firm, on Twitter: https://twitter.com/rosen_firm or on Facebook: https://www.facebook.com/rosenlawfirm/. Attorney Advertising. Prior results do not guarantee a similar outcome. ------------------------------- Contact Information: Laurence Rosen, Esq. Phillip Kim, Esq. The Rosen Law Firm, P.A. 275 Madison Avenue, 40th Floor New York, NY 10016 Tel: (212) 686-1060 Toll Free: (866) 767-3653 Fax: (212) 202-3827 [email protected] www.rosenlegal.com SOUNSoundHound AI Inc$7.16-13.7%Stock Score Locked: Want to See it? Benzinga Rankings give you vital metrics on any stock - anytime. Reveal Full ScoreEdge RankingsMomentum96.96Growth82.87Quality-Value7.74Price TrendShortMediumLongOverviewMarket News and Data brought to you by Benzinga APIs

Faruqi & Faruqi Reminds SoundHound AI Investors of the Pending Class Action Lawsuit with a Lead Plaintiff Deadline of May 27, 2025 - SOUN - SoundHound AI (NASDAQ:SOUN)

Faruqi & Faruqi, LLP Securities Litigation Partner James (Josh) Wilson Encourages Investors Who Suffered Losses Exceeding $100,000 In SoundHound AI To Contact Him Directly To Discuss Their Options If you suffered losses exceeding $100,000 in SoundHound AI between May 10, 2024 and March 3, 2025 and would like to discuss your legal rights, call Faruqi & Faruqi partner Josh Wilson directly at 877-247-4292 or 212-983-9330 (Ext. 1310). [You may also click here for additional information] NEW YORK, April 06, 2025 (GLOBE NEWSWIRE) -- Faruqi & Faruqi, LLP, a leading national securities law firm, is investigating potential claims against SoundHound AI, Inc. ("SoundHound" or the "Company") SOUN and reminds investors of the May 27, 2025 deadline to seek the role of lead plaintiff in a federal securities class action that has been filed against the Company. Faruqi & Faruqi is a leading national securities law firm with offices in New York, Pennsylvania, California and Georgia. The firm has recovered hundreds of millions of dollars for investors since its founding in 1995. See www.faruqilaw.com. As detailed below, the complaint alleges that the Company and its executives violated federal securities laws by making false and/or misleading statements and/or failing 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 United States Securities and Exchange Commission ("SEC"); and (6) as a result, the Company's public statements were materially false and misleading at all relevant times. 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 (the "2024 10-K"). 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 $0.60 per share, or 5.81%, to close at $9.72 per share on March 4, 2025. The court-appointed lead plaintiff is the investor with the largest financial interest in the relief sought by the class who is adequate and typical of class members who directs and oversees the litigation on behalf of the putative class. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member. Your ability to share in any recovery is not affected by the decision to serve as a lead plaintiff or not. Faruqi & Faruqi, LLP also encourages anyone with information regarding SoundHound's conduct to contact the firm, including whistleblowers, former employees, shareholders and others. To learn more about the SoundHound AI class action, go to www.faruqilaw.com/SOUN or call Faruqi & Faruqi partner Josh Wilson directly at 877-247-4292 or 212-983-9330 (Ext. 1310). Follow us for updates on LinkedIn, on X, or on Facebook. Attorney Advertising. The law firm responsible for this advertisement is Faruqi & Faruqi, LLP (www.faruqilaw.com). Prior results do not guarantee or predict a similar outcome with respect to any future matter. We welcome the opportunity to discuss your particular case. All communications will be treated in a confidential manner. A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/6e8a581f-1c68-4596-885c-0a64b18c9ae1 SOUNSoundHound AI Inc$7.16-13.7%Stock Score Locked: Want to See it? Benzinga Rankings give you vital metrics on any stock - anytime. Reveal Full ScoreEdge RankingsMomentum96.96Growth82.87Quality-Value7.74Price TrendShortMediumLongOverviewMarket News and Data brought to you by Benzinga APIs

SOUN INVESTOR ALERT: Robbins Geller Rudman & Dowd LLP Announces that SoundHound AI, Inc. Investors with Substantial Losses Have Opportunity to Lead the SoundHound Class Action Lawsuit - SoundHound AI (NASDAQ:SOUN)

SAN DIEGO, March 31, 2025 (GLOBE NEWSWIRE) -- Robbins Geller Rudman & Dowd LLP announces that purchasers or acquirers of SoundHound AI, Inc. SOUN securities between May 10, 2024 and March 3, 2025, inclusive (the "Class Period"), have until May 27, 2025 to seek appointment as lead plaintiff of the SoundHound class action lawsuit. Captioned Liles v. SoundHound AI, Inc., No. 25-cv-02915 (N.D. Cal.), the SoundHound class action lawsuit charges SoundHound and certain of SoundHound's top executives with violations of the Securities Exchange Act of 1934. If you suffered substantial losses and wish to serve as lead plaintiff of the SoundHound class action lawsuit, please provide your information here: https://www.rgrdlaw.com/cases-soundhound-ai-inc-class-action-lawsuit.html You can also contact attorneys J.C. Sanchez or Jennifer N. Caringal of Robbins Geller by calling 800/449-4900 or via e-mail at [email protected]. CASE ALLEGATIONS: SoundHound provides an independent voice AI platform that purportedly enables businesses across industries to deliver high-quality conversational experiences to their customers. The SoundHound class action lawsuit alleges that defendants throughout the Class Period made false and/or misleading statements and/or failed to disclose that: (i) material weaknesses in SoundHound's internal controls over financial reporting impaired SoundHound's ability to effectively account for corporate acquisitions; (ii) in addition, SoundHound 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 its acquisition of Amelia Holdings, Inc. was inflated and would need to be corrected; (iv) further, SoundHound would likely require extra time and expense to effectively account for its SYNQ3 and Amelia acquisitions; and (v) the above increased the risk that SoundHound would be unable to timely file certain financial reports with the U.S. Securities and Exchange Commission. The SoundHound class action lawsuit further alleges that on March 4, 2025, SoundHound disclosed that it would be unable to timely file its annual report for 2024, stating 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 the accompanying notes" and that SoundHound "ha[d] identified material weaknesses in its internal control over financial reporting." On this news, the price of SoundHound stock fell nearly 6%, according to the complaint. THE LEAD PLAINTIFF PROCESS: The Private Securities Litigation Reform Act of 1995 permits any investor who purchased or acquired SoundHound securities during the Class Period to seek appointment as lead plaintiff in the SoundHound class action lawsuit. A lead plaintiff is generally the movant with the greatest financial interest in the relief sought by the putative class who is also typical and adequate of the putative class. A lead plaintiff acts on behalf of all other class members in directing the SoundHound class action lawsuit. The lead plaintiff can select a law firm of its choice to litigate the SoundHound class action lawsuit. An investor's ability to share in any potential future recovery is not dependent upon serving as lead plaintiff of the SoundHound class action lawsuit. ABOUT ROBBINS GELLER: Robbins Geller Rudman & Dowd LLP is one of the world's leading law firms representing investors in securities fraud and shareholder litigation. Our Firm has been ranked #1 in the ISS Securities Class Action Services rankings for four out of the last five years for securing the most monetary relief for investors. In 2024, we recovered over $2.5 billion for investors in securities-related class action cases - more than the next five law firms combined, according to ISS. With 200 lawyers in 10 offices, Robbins Geller is one of the largest plaintiffs' firms in the world, and the Firm's attorneys have obtained many of the largest securities class action recoveries in history, including the largest ever - $7.2 billion - in In re Enron Corp. Sec. Litig. Please visit the following page for more information: https://www.rgrdlaw.com/services-litigation-securities-fraud.html Past results do not guarantee future outcomes. Services may be performed by attorneys in any of our offices. Robbins Geller Rudman & Dowd LLP J.C. Sanchez, Jennifer N. Caringal 655 W. Broadway, Suite 1900, San Diego, CA 92101 800-449-4900 [email protected] SOUNSoundHound AI Inc$8.08-4.94%Stock Score Locked: Want to See it? Benzinga Rankings give you vital metrics on any stock - anytime. Reveal Full ScoreEdge RankingsMomentum96.08Growth82.92Quality-Value8.20Price TrendShortMediumLongOverviewMarket News and Data brought to you by Benzinga APIs

INVESTOR ALERT: Class Action Lawsuit Filed on Behalf of SoundHound AI, Inc. (SOUN) Investors - Holzer & Holzer, LLC Encourages Investors With Significant Losses to Contact the Firm - SoundHound AI (NASDAQ:SOUN)

ATLANTA, March 31, 2025 (GLOBE NEWSWIRE) -- A shareholder class action lawsuit has been filed against SoundHound AI, Inc. ("SoundHound" or "the Company") SOUN. The lawsuit alleges that Defendants made materially false and/or misleading statements, and/or failed to disclose material adverse facts regarding SoundHound's business, operations, and prospects, including allegations 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. If you bought shares of SoundHound between May 10, 2024 and March 3, 2025, and you suffered a significant loss on that investment, you are encouraged to discuss your legal rights by contacting Corey D. Holzer, Esq. at [email protected], by toll-free telephone at (888) 508-6832 or you may visit the firm's website at www.holzerlaw.com/case/soundhound/ to learn more. The deadline to ask the court to be appointed lead plaintiff in the case is May 27, 2025. Holzer & Holzer, LLC, an ISS top rated securities litigation law firm for 2021, 2022, and 2023, dedicates its practice to vigorous representation of shareholders and investors in litigation nationwide, including shareholder class action and derivative litigation. Since its founding in 2000, Holzer & Holzer attorneys have played critical roles in recovering hundreds of millions of dollars for shareholders victimized by fraud and other corporate misconduct. More information about the firm is available through its website, www.holzerlaw.com, and upon request from the firm. Holzer & Holzer, LLC has paid for the dissemination of this promotional communication, and Corey Holzer is the attorney responsible for its content. CONTACT: Corey Holzer, Esq. (888) 508-6832 (toll-free) [email protected] SOUNSoundHound AI Inc$8.07-5.06%Stock Score Locked: Want to See it? Benzinga Rankings give you vital metrics on any stock - anytime. Reveal Full ScoreEdge RankingsMomentum96.08Growth82.92Quality-Value8.20Price TrendShortMediumLongOverviewMarket News and Data brought to you by Benzinga APIs

Why SoundHound AI Stock Plunged 25% Lower in March | The Motley Fool

Shares of SoundHound AI (SOUN -4.27%) fell 25% in March 2025, according to data from S&P Global Market Intelligence. The maker of artificial intelligence (AI) tools for computer interpretation of voice commands didn't have an earnings release last month. The company's only business-related press release featured another collaboration with AI giant Nvidia, which tends to drive SoundHound AI's stock higher. So why did the share price continue to fall after negative moves in January and February? It simply looks like the meme-stock moves of last December are fading out a bit slower than they arrived. SoundHound AI's shares started March's market action at $10.82 per share. That was down from $14.15 one month earlier, $19.84 at the end of 2024, and $23.23 per share at the mid-holiday peak. There was a lot of social media-powered hot air to release from SoundHound AI's inflated stock price, and it's taking a while. The stock doesn't even look cheap after three months of robust price drops, when you consider that it traded for $4.50 per share in early October. Some would even call that single-digit price a bit inflated, given SoundHound AI's volatile market action in the spring of 2024. As a reminder, Nvidia invested just $3.7 million in SoundHound AI stock and the share price more than quadrupled over the next month. Now, there is real substance to SoundHound AI's business. The company's AI-driven voice recognition platform is a prime-quality system, finding use cases and deep-pocketed clients in areas such as in-car system controls, drive-thru ordering windows, and phone-based menu systems. The company addresses a large and growing market from a surprisingly strong leadership position. However, it's a bit early to lift the stock price into the stratosphere. SoundHound AI will take years to convert its robust order backlog into bankable revenue (not to mention profits, which could take even longer). For now, the stock is changing hands at a lofty 39 times trailing sales. A lot has to go absolutely right in order to justify even this lowered price point. All that being said, I rebuilt my SoundHound AI position in mid-March after taking some profits in December. That's how confident I am in the company's ability to monetize its long-term contracts and continue to grow its client roster. But it's a pretty small position, and I would not recommend betting big money on this fairly risky idea right now. It could drop back to $2 or $3 per share and still look pricey in a certain slant of light.

Why SoundHound AI Stock Is Plummeting Today | The Motley Fool

Shares of SoundHound AI (SOUN -13.98%) are plunging on Friday. The voice artificial intelligence (AI) technology company's stock lost 14.5% as of 1:50 p.m. ET and was down as much as 18.7% earlier in the day. The steep decline comes as the S&P 500 and Nasdaq Composite both lost nearly 5%. Already seeing pressure from President Donald Trump's tariffs, the company faces a class action lawsuit from investors alleging it made misleading statements about its accounting practices. The law firm Kessler Topaz Meltzer & Check filed a class action lawsuit on behalf of shareholders on Thursday claiming issues with the company's accounting practices. Specifically, the suit alleges that SoundHound failed to fully disclose the issues with its financial reporting. According to the lawsuit, SoundHound allegedly gave investors the impression that it had resolved weaknesses in its internal financial controls when it had not. Adding fuel to the fire, this morning the company said it could not file its 2024 financial report on time because of the complexity surrounding recent acquisitions. At the same time, the company's stock is caught up in the escalating trade war hitting the whole market. Trump's announcement of significant tariffs on nearly all of U.S. trading partners was met quickly with retaliatory tariffs, including a 34% levy from China. SoundHound rocketed to fame after AI giant Nvidia took a significant stake in the company. To the dismay of investors, Nvidia exited the position months ago and SoundHound's stock has struggled since. The company's technology is impressive and it has managed to partner with key players that lend credibility to the growing business, but AI is still in its relative infancy and SoundHound's position is by no means safe. I would hold off on investing further in SoundHound.

SoundHound AI Sued After Delayed Financials Reveal Control Failures, Stock Falls Nearly 15%

SoundHound AI has experienced an almost 15% stock drop. | Credit:Spencer Platt / Getty Images. SoundHound AI, an AI-powered voice technology platform, has been sued after allegedly misleading investors with false statements regarding its accounting practices. The lawsuit comes as leading AI firm OpenAI continues to face its own wave of legal challenges, highlighting the increasing legal scrutiny across the AI industry. On Thursday, April 3, OpenAI won a bid to consolidate several high-profile copyright lawsuits into a single case. SoundHound AI's Financials The law firm Kessler Topaz Meltzer & Check filed the class action lawsuit on Thursday, April 3, claiming that SoundHound failed to fully disclose issues with its financial reporting, mainly related to the accounting of its corporate acquisitions. The AI firm allegedly gave the impression that it had resolved weaknesses in its internal financial controls, while in reality, it had not taken sufficient action. On March 4, 2025, SoundHound disclosed that it could not file its 2024 financial report on time due to "the complexity of accounting for" its previously announced acquisitions of Synq3 and Amelia Holdings. "SoundHound overstated the extent to which it had remediated, and/or its ability to remediate, the material weaknesses in its internal controls over financial reporting," the law firm stated in the filing notice. "As a result of the foregoing material weaknesses, SoundHound's reported goodwill following the acquisition of Amelia Holdings, Inc. in August 2024 was inflated and required correction," it added. Misleading Statements On March 11, 2025, SoundHound released its full-year 2024 financial report and admitted that, as of the end of 2024, the company did not have proper systems in place to handle complicated financial situations, the lawsuit alleges . The law firm claims that SoundHound likely needed more time and resources than initially expected to properly manage the accounting for the two companies it acquired -- Amelia Holdings and Synq3. However, instead of informing investors about these risks, the company continued making public statements that the law firm now alleges were misleading. The ongoing challenges and lawsuit has led to the company's stock falling by nearly 15% over the past month. Kessler Topaz Meltzer & Check has urged SoundHound investors "who have suffered significant losses" to contact the firm for more information. OpenAI Wins Consolidation of Copyright Lawsuits On Thursday, April 3, a U.S. judicial panel in New York approved the consolidation of multiple copyright cases filed against OpenAI by authors, news organizations, and entertainment industry figures. Several lawsuits filed in California -- including those brought by comedian Sarah Silverman and other writers -- have now been moved to a federal court in Manhattan. These cases will join similar lawsuits already filed there by The New York Times and authors such as George R. R. Martin and John Grisham. Last year, OpenAI petitioned the judicial panel to consolidate 12 lawsuits into one, arguing that the cases involved "the same underlying allegations: that OpenAI used plaintiffs' copyrighted works to train certain large language models." Most plaintiffs opposed consolidation, stating their cases were too distinct to be combined. Nevertheless, the judges sided with OpenAI's request. "We welcome this development and look forward to making it clear in court that our models are trained on publicly available data, grounded in fair use, and supportive of innovation," an OpenAI spokesperson said.

Wolf Haldenstein Adler Freeman & Herz LLP Announces the Filing of a Class Action Against SoundHound AI, Inc. By Investing.com

NEW YORK, March 31, 2025 (GLOBE NEWSWIRE) -- Wolf Haldenstein Adler Freeman & Herz LLP, a distinguished law firm, announces that a class action lawsuit has been filed against SoundHound AI, Inc. ("SoundHound" or the "Company")(NASDAQ: SOUN) and certain officers on behalf of a class consisting of all persons and entities other than Defendants that purchased or otherwise acquired SoundHound securities between May 10, 2024 and March 3, 2025, both dates inclusive (the "Class Period") If you are an investor who purchased or otherwise acquired SoundHound securities during the Class Period, you have until May 27, 2025 to ask the Court to appoint you as Lead Plaintiff for the class. PLEASE CLICK HERE TO JOIN CASE AND SUBMIT CONTACT INFORMATION The filed complaint alleges that throughout the Class Period, the defendants made materially false, misleading and potentially damaging statements regarding the Business Operations of SoundHound AI. These include unvalidated claims about the Company''s status, capabilities, and prospects, which have had considerable adverse effects on investors who relied on the information shared. On March 4, 2025, SoundHound disclosed in a filing with the United States Securities and Exchange Commission ("SEC") that it would be unable to timely file its Annual Report for 2024 (the "2024 10-K") 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." Subsequently, on March 11, 2025, SoundHound filed its 2024 10-K. In the 2024 10-K, SoundHound stated, in relevant part, 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""disclosing for the first time that the Company's lack of effective controls was impairing its ability to account for corporate acquisitions. Wolf Haldenstein Adler Freeman & Herz LLP is steadfast in their pursuit of justice for investors who have suffered financial harm due to these misrepresented statements. The law firm brings to the fore decades of legal expertise in securities litigation and has a proven track record of protecting the rights of investors. We encourage all investors who have been affected or have information that will assist in our investigation, to contact Wolf Haldenstein Adler Freeman & Herz LLP.

Kuehn Law Encourages Investors of SoundHound AI, Inc. to Contact Law Firm By Investing.com

New York, New York--(Newsfile Corp. - April 1, 2025) - Kuehn Law, PLLC, a shareholder litigation law firm, is investigating whether certain officers and directors of SoundHound AI, Inc. (NASDAQ: SOUN) breached their fiduciary duties to shareholders. According to a federal securities lawsuit, Insiders at SoundHound caused the company to misrepresent or fail 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; (v) the foregoing increased the risk that the Company would be unable to timely file certain financial reports with the United States Securities and Exchange Commission; and (vi) as a result, the Company's public statements were materially false and misleading at all relevant times. If you currently own SOUN and purchased prior to May 10, 2024 please contact Justin Kuehn, Esq. here, by email at [email protected] or call (833) 672-0814. Kuehn Law pays all case costs and does not charge its investor clients. Shareholders should contact the firm immediately as there may be limited time to enforce your rights. Why Your Participation Matters: As a shareholder your voice matters, and by getting involved, you contribute to the integrity and fairness of the financial markets. Your investment. Your voice. Your future.™ For additional information, please visit Shareholder Derivative Litigation - Kuehn Law. Attorney advertising. Prior results do not guarantee similar outcomes. To view the source version of this press release, please visit https://www.newsfilecorp.com/release/246937

SOUN Robbins Geller Rudman & Dowd LLP Announces that SoundHound AI, Inc. Investors with Substantial Losses Have Opportunity to Lead Class Action Lawsuit

The law firm ofRobbins Geller Rudman & Dowd LLP announces that purchasers or acquirers of SoundHound AI, Inc. (NASDAQ: SOUN) securities between May 10, 2024 and March 3, 2025, both dates inclusive (the "Class Period"), have until May 27, 2025 to seek appointment as lead plaintiff of the SoundHound class action lawsuit. Captioned Liles v. SoundHound AI, Inc., No. 25-cv-02915 (N.D. Cal.), the SoundHound class action lawsuit charges SoundHound and certain of SoundHound's top executives with violations of the Securities Exchange Act of 1934. If you suffered substantial losses and wish to serve as lead plaintiff of the SoundHound class action lawsuit, please provide your information here: https://www.rgrdlaw.com/cases-soundhound-ai-inc-class-action-lawsuit.html You can also contact attorneys J.C. Sanchez or Jennifer N. Caringal of Robbins Geller by calling 800/449-4900 or via e-mail at [email protected]. CASE ALLEGATIONS: SoundHound provides an independent voice AI platform that purportedly enables businesses across industries to deliver high-quality conversational experiences to their customers. The SoundHound class action lawsuit alleges that defendants throughout the Class Period made false and/or misleading statements and/or failed to disclose that: (i) material weaknesses in SoundHound's internal controls over financial reporting impaired SoundHound's ability to effectively account for corporate acquisitions; (ii) in addition, SoundHound 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 its acquisition of Amelia Holdings, Inc. was inflated and would need to be corrected; (iv) further, SoundHound would likely require extra time and expense to effectively account for its SYNQ3 and Amelia acquisitions; and (v) the above increased the risk that SoundHound would be unable to timely file certain financial reports with the U.S. Securities and Exchange Commission. The SoundHound class action lawsuit further alleges that on March 4, 2025, SoundHound disclosed that it would be unable to timely file its annual report for 2024, stating 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 the accompanying notes" and that SoundHound "ha[d] identified material weaknesses in its internal control over financial reporting." On this news, the price of SoundHound stock fell nearly 6%, according to the complaint. THE LEAD PLAINTIFF PROCESS: The Private Securities Litigation Reform Act of 1995 permits any investor who purchased or acquired SoundHound securities during the Class Period to seek appointment as lead plaintiff in the SoundHound class action lawsuit. A lead plaintiff is generally the movant with the greatest financial interest in the relief sought by the putative class who is also typical and adequate of the putative class. A lead plaintiff acts on behalf of all other class members in directing the SoundHound class action lawsuit. The lead plaintiff can select a law firm of its choice to litigate the SoundHound class action lawsuit. An investor's ability to share in any potential future recovery is not dependent upon serving as lead plaintiff of the SoundHound class action lawsuit. ABOUT ROBBINS GELLER: Robbins Geller Rudman & Dowd LLP is one of the world's leading law firms representing investors in securities fraud and shareholder litigation. Our Firm has been ranked #1 in the ISS Securities Class Action Services rankings for four out of the last five years for securing the most monetary relief for investors. In 2024, we recovered over $2.5 billion for investors in securities-related class action cases - more than the next five law firms combined, according to ISS. With 200 lawyers in 10 offices, Robbins Geller is one of the largest plaintiffs' firms in the world, and the Firm's attorneys have obtained many of the largest securities class action recoveries in history, including the largest ever - $7.2 billion - in In re Enron Corp. Sec. Litig. Please visit the following page for more information: https://www.rgrdlaw.com/services-litigation-securities-fraud.html Past results do not guarantee future outcomes. Services may be performed by attorneys in any of our offices. View source version on businesswire.com: https://www.businesswire.com/news/home/20250331334658/en/