SoundHound AI Faces Class Action Lawsuit Over Alleged Financial Misrepresentation
12 Sources
[1]
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
[2]
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
[3]
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").
[4]
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
[5]
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
[6]
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
[7]
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
[8]
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
[9]
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
[10]
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
[11]
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,
[12]
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
Share
Copy Link
Multiple law firms have filed class action lawsuits against SoundHound AI, alleging the company made false statements about its financial controls and acquisition accounting, leading to a drop in stock price.
Class Action Lawsuits Filed Against SoundHound AI
SoundHound AI, Inc., a company that provides an independent voice artificial intelligence platform, is facing multiple class action lawsuits filed by prominent law firms on behalf of investors who purchased the company's securities between May 10, 2024, and March 3, 2025
1
2
3
4
5
. The lawsuits allege that SoundHound and certain of its top executives violated federal securities laws by making false and misleading statements about the company's financial controls and ability to account for corporate acquisitions.Allegations of Financial Misrepresentation
The complaints filed against SoundHound claim that the company:
- Failed to disclose material weaknesses in its internal controls over financial reporting, which impaired its ability to effectively account for corporate acquisitions
1
3
. - Overstated the extent to which it had remediated, or could remediate, these material weaknesses
2
4
. - Inflated its reported goodwill following the acquisition of Amelia Holdings, Inc.
3
5
. - Misled investors about the time and expense required to effectively account for its SYNQ3 and Amelia acquisitions
1
4
.
These alleged misrepresentations are said to have increased the risk that SoundHound would be unable to timely file certain financial reports with the U.S. Securities and Exchange Commission (SEC)
2
5
.Impact on Investors and Stock Price
On March 4, 2025, SoundHound disclosed in an SEC filing that it would be unable to timely file its Annual Report for 2024 due to the complexity of accounting for the SYNQ3 and Amelia acquisitions
1
3
. The company also revealed that it had identified material weaknesses in its internal control over financial reporting2
4
.Following this announcement, SoundHound's stock price reportedly fell $0.60 per share, or 5.81%, closing at $9.72 per share on March 4, 2025
3
5
. This drop in stock price has prompted the class action lawsuits on behalf of affected investors.Related Stories
Legal Proceedings and Investor Options
Multiple law firms, including Pomerantz LLP, Levi & Korsinsky LLP, Rosen Law Firm, Faruqi & Faruqi LLP, and Robbins Geller Rudman & Dowd LLP, have announced the filing of class action lawsuits against SoundHound
1
2
3
4
5
. These firms are seeking to recover damages for affected investors under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder.Investors who purchased or acquired SoundHound securities during the specified period have until May 27, 2025, to request appointment as lead plaintiff in the class action lawsuits
1
3
5
. The lead plaintiff will act on behalf of all other class members in directing the litigation and can select the law firm of their choice to litigate the case.Implications for SoundHound and the AI Industry
This legal challenge comes at a time when SoundHound had been positioning itself as a leader in the voice AI industry, with the company previously touting its "strategic acquisitions" as contributing to a "breakthrough year" in 2024
1
. The allegations and subsequent legal actions raise questions about the company's financial management and could potentially impact investor confidence in the broader AI sector.References
Summarized by
Navi
Related Stories
SoundHound AI Faces Securities Fraud Class Action Lawsuit Over Financial Reporting Issues
28 Apr 2025•Business and Economy
SoundHound AI Faces Securities Fraud Lawsuit Over Financial Reporting Issues
14 Apr 2025•Business and Economy
SoundHound AI Stock Plummets Despite Strong Q2 Performance: Market Concerns and Future Outlook
20 Aug 2025•Technology
Recent Highlights
1
OpenAI Pauses AI Model Training After Agents Hack Government Websites and Breach Security Protocols
Technology
2
Meta Unveils Camera-Free AI Glasses and Muse Integration Amid Privacy Debate at Connect 2026
Technology
3
AI Researchers Sound Alarm: Companies Racing Toward Self-Improving Systems Despite Existential Risks
Policy and Regulation
Recent Highlights
Today's Top Stories
Don’t drown in AI news. We cut through the noise - filtering, ranking and summarizing the most important AI news, breakthroughs and research daily. Follow topics that matter to you and stay ahead.
