Radnor, Pa. – A class action lawsuit was initiated against SoundHound AI, Inc., a notable Nasdaq-listed company, alleging false and misleading financial information to its investors. Kessler Topaz Meltzer & Check, LLP, the law firm handling the lawsuit, asserts that the accusations pertain to the period between May 10, 2024, and March 3, 2025. During this timeframe, it’s claimed that SoundHound mismanaged its internal controls regarding financial reporting and overstated its remediation capabilities. This has reportedly led to an inflated valuation of goodwill for its recent acquisition and may have jeopardized its ability to timely file required financial reports with regulatory bodies.
The lawsuit specifically highlights issues following SoundHound’s acquisition of Amelia Holdings, Inc. in August 2024 and earlier acquisition of SYNQ3 in January 2024. Allegations suggest that these acquisitions were not properly accounted for, leading to significant financial discrepancies.
As a result, SoundHound’s stakeholders, particularly those who invested within the specified period, may have been misled regarding the company’s financial health and operational efficiencies. The alleged misrepresentations have raised concerns about the potential risks and extra costs needed to rectify the accounting for the acquisitions.
The complaint goes further to accuse SoundHound of not only having existing weaknesses in their financial reporting but also of inaccurately stating how these deficiencies were being addressed. This has led to a loss of trust and potentially significant financial loss among the investors.
Jonathan Naji, Esq., of Kessler Topaz Meltzer & Check, LLP, is leading the legal challenge. He urges SoundHound investors who have suffered significant financial losses to come forward and get involved in the class action lawsuit by May 27, 2025. The lead plaintiff process is open until this deadline, and it provides an opportunity for investors to be appointed as representative parties on behalf of the entire class. The appointed lead plaintiff will direct the litigation and selection of counsel.
Kessler Topaz Meltzer & Check, LLP is known for its robust legal pursuits in protecting investor rights across various class action lawsuits nationwide. This lawsuit represents another stride towards holding corporations accountable for their fiduciary activities.
Investors in SoundHound AI, Inc. or those interested in learning more about this lawsuit are encouraged to contact Jonathan Naji, Esq. directly for detailed information and legal advice.
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