SoundHound AI(SOUN) GlobeNewswire News Room·2025-03-31 23:28Core 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].