Robbins LLP is Investigating Allegations that SoundHound AI, Inc. (SOUN) Failed to Disclose it Lacked Effective Controls Relating to Corporate Acquisitions

Robbins LLP informs stockholders that a class action was filed on behalf of all persons and entities that purchased or otherwise acquired SoundHound AI, Inc. (NASDAQ: SOUN) securities between May 10, 2024 and March 3, 2025. SoundHound provides an independent voice artificial intelligence (“AI”) platform that purportedly enables businesses across industries to deliver high-quality conversational experiences to their customers.

The Allegations

According to the complaint, during the class period, defendants failed to disclose that: (i) the material weaknesses in SoundHound’s internal controls over financial reporting impaired the Company’s ability to effectively account for corporate acquisitions; (ii) in addition, the Company overstated the extent to which it had remediated, and/or its ability to remediate, the material weaknesses in its internal controls over financial reporting; (iii) as a result of the foregoing material weaknesses, SoundHound’s reported goodwill following the Amelia Acquisition was inflated and would need to be corrected; (iv) further, SoundHound would likely require extra time and expense to effectively account for the SYNQ3 and Amelia Acquisitions; and (v) the foregoing increased the risk that the Company would be unable to timely file certain financial reports with the SEC.

On March 4, 2025, SoundHound disclosed in a filing with the SEC that it would be unable to timely file its Annual Report for 2024.  SoundHound stated that “[d]ue to the complexity of accounting for [the SYNQ3 and Amelia Acquisitions], the Company require[d] additional time to prepare financial statements and accompanying notes” and that it “ha[d] identified material weaknesses in its internal control over financial reporting.” On this news, SoundHound’s stock price fell $0.61 per share, or 5.86%, to close at $9.72 per share on March 4, 2025.

What Now: You may be eligible to participate in the class action against SoundHound AI, Inc. Shareholders who want to serve as lead plaintiff for the class should contact Robbins LLP. A lead plaintiff is a representative party who acts on behalf of other class members in directing the litigation.  You do not have to participate in the case to be eligible for a recovery. If you choose to take no action, you can remain an absent class member.

All representation is on a contingency fee basis. Shareholders pay no fees or expenses.