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Faruqi & Faruqi Reminds SoundHound AI Investors of the Pending Class Action Lawsuit with a Lead Plaintiff Deadline of May 27, 2025 - SOUN
SOUNSoundHound AI(SOUN) GlobeNewswire News Room·2025-04-06 13:10

Core Viewpoint - Faruqi & Faruqi, LLP is investigating potential claims against SoundHound AI, Inc. due to allegations of violations of federal securities laws, particularly concerning misleading statements and material weaknesses in internal controls over financial reporting [2][4]. Group 1: Legal Investigation and Class Action - Faruqi & Faruqi, LLP is encouraging investors who suffered losses exceeding 100,000inSoundHoundAIbetweenMay10,2024,andMarch3,2025,todiscusstheirlegaloptions[1].−AfederalsecuritiesclassactionhasbeenfiledagainstSoundHound,withadeadlineofMay27,2025,forinvestorstoseektheroleofleadplaintiff[2].−Thefirmhasahistoryofrecoveringhundredsofmillionsofdollarsforinvestorssinceitsfoundingin1995[3].Group2:AllegationsAgainstSoundHound−ThecomplaintallegesthatSoundHoundanditsexecutivesmadefalseandmisleadingstatementsregardingthecompany′sinternalcontrolsandfinancialreporting[4].−SpecificallegationsincludethatSoundHoundoverstateditsremediationeffortsformaterialweaknessesininternalcontrolsandinflatedreportedgoodwillfollowingtheAmeliaAcquisition[4].−ThecompanydisclosedonMarch4,2025,thatitwouldbeunabletotimelyfileitsAnnualReportfor2024duetocomplexitiesinaccountingforacquisitions,leadingtoastockpricedropof100,000 in SoundHound AI between May 10, 2024, and March 3, 2025, to discuss their legal options [1]. - A federal securities class action has been filed against SoundHound, with a deadline of May 27, 2025, for investors to seek the role of lead plaintiff [2]. - The firm has a history of recovering hundreds of millions of dollars for investors since its founding in 1995 [3]. Group 2: Allegations Against SoundHound - The complaint alleges that SoundHound and its executives made false and misleading statements regarding the company's internal controls and financial reporting [4]. - Specific allegations include that SoundHound overstated its remediation efforts for material weaknesses in internal controls and inflated reported goodwill following the Amelia Acquisition [4]. - The company disclosed on March 4, 2025, that it would be unable to timely file its Annual Report for 2024 due to complexities in accounting for acquisitions, leading to a stock price drop of 0.60 per share, or 5.81% [5][6]. Group 3: Class Action Participation - The lead plaintiff in a class action is typically the investor with the largest financial interest who can adequately represent the class [7]. - Any member of the putative class can move the court to serve as lead plaintiff or remain an absent class member without affecting their ability to share in any recovery [7]. - Faruqi & Faruqi encourages individuals with information regarding SoundHound's conduct to come forward, including whistleblowers and former employees [8].