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 ...

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].

Core Viewpoint - SoundHound AI has experienced significant stock volatility, with a notable rise of over 350% since the start of 2024, despite a decline from its peak due to Nvidia selling its stake and broader AI market sell-offs [1][2][5] Company Overview - SoundHound AI focuses on audio input for AI applications, differentiating itself from competitors that primarily use text input, which is particularly useful in hands-free situations [6] - The company has a current market capitalization of $3.9 billion, and to turn a $10,000 investment into $1 million, it would need to grow to nearly $400 billion, a challenging feat given the scale of existing giants in the industry [4] Financial Performance - In Q4, SoundHound's revenue grew by 101% to $34.5 million, with management projecting revenue between $157 million and $177 million for 2025, indicating a potential growth rate of 97% at the midpoint [7] - The revenue backlog at the end of Q4 was $1.2 billion, suggesting sustained growth potential for several years, even after accounting for the 2025 revenue forecast [8] Valuation Metrics - Despite a 60% decline from its all-time high, SoundHound's stock trades at a high valuation of 39 times sales, which is above the typical range of 10 to 20 times for software companies [9] - If SoundHound doubles its revenue as projected, the valuation could adjust to around 20 times sales, making it more attractive [10] Future Outlook - The future performance of SoundHound's stock will largely depend on its ability to sustain growth beyond 2025, with potential for significant stock price appreciation if revenue continues to double in subsequent years [11] - While the potential for turning a $10,000 investment into $1 million is unlikely, the company could still represent a successful investment opportunity that enhances portfolio returns [12]

Company Performance - SoundHound AI, Inc. closed at $10.20, reflecting a -1.07% change from the previous day, underperforming the S&P 500 which gained 0.16% [1] - The company's shares increased by 9.33% over the past month, outperforming the Computer and Technology sector which declined by 5.94% and the S&P 500 which fell by 3.59% [1] Earnings Expectations - The upcoming earnings report for SoundHound AI, Inc. is anticipated to show an EPS of -$0.07, remaining consistent with the same quarter last year [2] - Revenue is expected to reach $30.21 million, representing a significant increase of 160.62% compared to the same quarter last year [2] Full Year Projections - For the full year, analysts project an EPS of -$0.16 and revenue of $165.76 million, indicating increases of +84.62% and +95.72% respectively from the previous year [3] Analyst Forecast Revisions - Recent revisions to analyst forecasts for SoundHound AI, Inc. are important as they reflect short-term business trends, with positive changes indicating analyst optimism about the company's profitability [4] - The Zacks Rank system, which incorporates these estimate changes, provides a rating system that can help investors make informed decisions [5] Zacks Rank and Industry Position - SoundHound AI, Inc. currently holds a Zacks Rank of 3 (Hold), with the Zacks Consensus EPS estimate having decreased by 4.72% in the past month [6] - The Computers - IT Services industry, part of the Computer and Technology sector, has a Zacks Industry Rank of 78, placing it in the top 32% of over 250 industries [7]