Core Viewpoint - The article discusses a class action lawsuit against SoundHound AI, Inc. for alleged violations of the Securities Exchange Act of 1934, focusing on internal control weaknesses and misleading statements made by the company and its executives during the class period from May 10, 2024, to March 3, 2025 [1][3]. Group 1: Lawsuit Details - The class action lawsuit is titled Liles v. SoundHound AI, Inc., and it allows purchasers of SoundHound securities during the specified class period to seek appointment as lead plaintiff by May 27, 2025 [1][5]. - Allegations include that SoundHound had material weaknesses in its internal controls over financial reporting, which affected its ability to account for corporate acquisitions [3][4]. - The lawsuit claims that SoundHound overstated its remediation efforts regarding these internal control weaknesses, leading to inflated reported goodwill from its acquisition of Amelia Holdings, Inc. [3][4]. Group 2: Impact on Financial Reporting - On March 4, 2025, SoundHound announced it would be unable to timely file its annual report for 2024 due to complexities in accounting for its acquisitions, which resulted in a nearly 6% drop in its stock price [4]. - The company identified material weaknesses in its internal control over financial reporting, which further exacerbated concerns regarding its financial statements [4]. Group 3: Legal Representation - Robbins Geller Rudman & Dowd LLP is representing investors in this class action lawsuit and has a strong track record in securities fraud litigation, having recovered over $2.5 billion for investors in 2024 alone [6]. - The firm has been ranked 1 in securing monetary relief for investors in securities class action cases for four out of the last five years [6].

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 corpor ...

A class action lawsuit has already been filed. If you wish to review a copy of the Complaint, you can visit the firm's site: bgandg.com/SOUN. or you may contact Peretz Bronstein, Esq. or his Client Relations Manager, Nathan Miller, of Bronstein, Gewirtz & Grossman, LLC at 332-239-2660. If you suffered a loss in SoundHound 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 lead plaintiff. There is No Co ...

NEW YORK, March 31, 2025 /PRNewswire/ -- Pomerantz LLP announces that a class action lawsuit has been filed against SoundHound AI, Inc. ("SoundHound" or the "Company") (NASDAQ: 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 ...

CONTACT: Corey Holzer, Esq. (888) 508-6832 (toll-free) cholzer@holzerlaw.com ATLANTA, March 31, 2025 (GLOBE NEWSWIRE) -- A shareholder class action lawsuit has been filed against SoundHound AI, Inc. ("SoundHound" or "the Company") (NASDAQ: 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 SoundHoun ...

Last year, artificial intelligence (AI) stocks were skyrocketing in value. Over the first three months of 2025, however, many of these growth superstars saw their valuations cut severely. If you've been waiting to buy AI stocks at a discount, these two companies are your best bets right now. Every AI investor should own this stock If you're adding AI stocks to your portfolio, strongly consider adding Nvidia (NVDA -1.51%). If you already own Nvidia stock, consider buying even more. When it comes to companies ...

Core Viewpoint - SoundHound AI has experienced significant stock price growth since the rise of artificial intelligence in late 2022, with a 429% increase in 2023 despite recent pullbacks [2] Company Overview - SoundHound specializes in voice-activated technology, serving industries such as restaurants and automotive [2][5] - The company launched its Houndify platform in 2016, enabling brands to create conversational voice assistants [5] - Cerence focuses on AI-powered virtual assistants specifically for the mobility and transportation market, with a strong presence in the automotive sector [7][8] Financial Performance - SoundHound reported an 85% revenue increase to $84.5 million in 2024, but its path to profitability remains uncertain with an adjusted EBITDA loss of $61.9 million [9][10] - For 2025, SoundHound anticipates revenue to double, projecting between $157 million and $177 million [10] - Cerence's revenue grew 12.5% to $331.5 million in fiscal 2024, but it expects a decline to $236 million-$247 million due to a lost contract with Toyota [11] - Cerence is profitable, reporting an adjusted net income of $56.1 million in fiscal 2024 [11] Valuation Metrics - SoundHound has a price-to-sales ratio of 37, reflecting its rapid growth potential [12] - Cerence trades at a trailing price-to-earnings ratio of less than 8, but its forward P/E is about 60 due to expected earnings declines [12] Investment Considerations - SoundHound is seen as a high-growth but high-risk investment, facing competition from major tech companies [13][14] - Cerence is viewed as a more stable investment, with established profitability and potential for future growth through partnerships, such as its recent collaboration with Nvidia [14]

Core Viewpoint - SoundHound AI's stock has significantly declined, down approximately 60% from its December highs, raising questions about potential buying opportunities for investors [1] Company Overview - SoundHound AI has been in the public market for several years and gained attention when Nvidia owned shares, which initially boosted its stock price [2] - Nvidia no longer holds shares in SoundHound AI, leading to speculation about the reasons behind their initial investment [3][4] - SoundHound AI is working towards profitability and has raised capital multiple times, with management expecting to achieve adjusted EBITDA profitability by the end of 2025 [5] Financial Performance - SoundHound AI experienced a remarkable revenue growth of 101% in Q4, with projected revenue for 2025 expected to be between $157 million and $177 million, indicating a growth rate of 97% [6] - The company's valuation has decreased from over 100 times sales at its peak to 41 times sales, which, while still high, is more justifiable given the expected revenue growth [7][8] Market Position and Future Outlook - SoundHound AI's revenue backlog was reported at $1.2 billion in Q4, suggesting significant future revenue potential, not including new deals that may be signed [10] - The stock could be a solid investment opportunity, with potential strong performance over the next five years if management's projections are met [11]

Core Viewpoint - A class action lawsuit has been filed against SoundHound AI, Inc. for failing to disclose material weaknesses in its internal controls over financial reporting, particularly related to corporate acquisitions [1][2]. Summary by Sections Allegations - Robbins LLP is investigating allegations that SoundHound AI, Inc. did not disclose material weaknesses in its internal controls over financial reporting, which affected its ability to account for corporate acquisitions [2]. - The complaint states that SoundHound overstated its remediation efforts regarding these weaknesses, leading to inflated reported goodwill following the Amelia Acquisition [2]. - The company is expected to require additional time and resources to account for the SYNQ3 and Amelia Acquisitions, increasing the risk of delays in filing financial reports with the SEC [2]. Recent Developments - On March 4, 2025, SoundHound announced it would be unable to timely file its Annual Report for 2024 due to complexities in accounting for the SYNQ3 and Amelia Acquisitions, and acknowledged material weaknesses in its internal controls [3]. - Following this announcement, SoundHound's stock price dropped by $0.61, or 5.86%, closing at $9.72 per share [3]. Next Steps - Shareholders may be eligible to participate in the class action against SoundHound AI, Inc. and can contact Robbins LLP if they wish to serve as lead plaintiff [4]. - Participation in the case is not required to be eligible for recovery, and shareholders can choose to remain absent class members [4].

Core Insights - SoundHound AI has experienced significant price fluctuations but remains a compelling investment opportunity due to its strong business fundamentals and growth potential [1][11]. Company Overview - SoundHound AI, originally known for its music identification apps, has evolved to develop AI tools for audio decoding, which have found applications in various industries [2][3]. - The company launched the Houndify system in 2016, leading to partnerships with global automakers and entertainment technology firms, and subsequently went public [4]. Business Development - SoundHound AI has secured a backlog of $1.2 billion in unfilled orders, representing a 75% increase year-over-year, indicating strong demand for its services [6]. - The company has established partnerships with notable clients, including Stellantis and restaurant management specialist Toast, expanding its market reach [5]. Stock Performance - The stock price of SoundHound AI saw a dramatic rise from $1.70 to $8.00 per share, influenced by an investment from Nvidia, but later experienced a decline [7][11]. - As of March 25, the stock was priced at $10.20 per share, down 49.4% year-to-date, but is now viewed as a more reasonable investment opportunity [11]. Market Dynamics - The stock became a target for short-sellers, with 33% of its publicly traded shares on loan, leading to a short-squeeze scenario that ultimately did not materialize as expected [8][10]. - The excessive price manipulation experienced in December has subsided, allowing for a more stable investment environment [12]. Investment Outlook - SoundHound AI is positioned as a practical application of AI technology across lucrative markets, making it a strong candidate for investment consideration [13].