SoundHound AI(SOUN) GlobeNewswire News Room·2025-05-22 19:41Core 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]. Group 1: Allegations - The lawsuit alleges that SoundHound did not disclose material weaknesses in its internal controls, which impaired its ability to account for corporate acquisitions [2]. - It is claimed that the company overstated its remediation efforts regarding these internal control weaknesses [2]. - The reported goodwill following the Amelia Acquisition was inflated and would require correction due to these weaknesses [2]. - SoundHound is expected to incur additional time and costs to account for the SYNQ3 and Amelia Acquisitions [2]. - The weaknesses increased the risk of the company being unable to file certain financial reports with the SEC in a timely manner [2]. Group 2: Stock Impact - On March 4, 2025, SoundHound announced it would be unable to timely file its Annual Report for 2024, citing the complexity of accounting for the SYNQ3 and Amelia Acquisitions [3]. - Following this announcement, SoundHound's stock price fell by 9.72 per share [3]. Group 3: Class Action Participation - 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]. - Shareholders do not need to participate in the case to be eligible for recovery and can remain absent class members if they choose [4]. Group 4: Company Background - Robbins LLP is a recognized leader in shareholder rights litigation, dedicated to helping shareholders recover losses and improve corporate governance since 2002 [5].