SAN DIEGO — A class action lawsuit has been opened by Robbins Geller Rudman & Dowd LLP against SoundHound AI, Inc., as announced to investors who acquired the company’s securities between May 10, 2024, and March 3, 2025. The lawsuit, identified as Liles v. SoundHound AI, Inc., No. 25-cv-02915 (N.D. Cal.), asserts that SoundHound and some of its top executives violated the Securities Exchange Act of 1934.
Investors who suffered significant losses are encouraged to seek the role of lead plaintiff by May 27, 2025, when the application period closes. Those interested can submit their details on the law firm’s dedicated page for the case or directly contact attorneys J.C. Sanchez or Jennifer N. Caringal of Robbins Geller for more information.
The lawsuit claims that during the specified period, SoundHound made false and misleading statements regarding its financial state and failed to disclose critical facts. Notably, the suit alleges that SoundHound had inadequate internal controls over financial reporting, particularly concerning the accounting of corporate acquisitions. This purportedly led to an overstatement of the company’s ability to address the material weaknesses in these controls.
Moreover, the complaint highlights that the reported goodwill following SoundHound’s acquisitions of Amelia Holdings, Inc. was inflated, a correction was consequently necessary, and this misrepresentation likely necessitated additional time and funds to fully integrate the acquisitions into SoundHound’s financial statements.
These alleged discrepancies culminated on March 4, 2025, when SoundHound admitted it would not be able to timely file its annual report for 2024. The company attributed the delay to complex accounting requirements for recent acquisitions, acknowledging material weaknesses in its internal control over financial reporting. Following this announcement, SoundHound shares dropped nearly 6%.
Under the Private Securities Litigation Reform Act of 1995, any investor who purchased or acquired SoundHound securities during the class period can seek to be appointed as lead plaintiff. The lead plaintiff will represent the entire class and is usually the investor with the largest financial interest who is also typical and adequate of the class. Serving as the lead plaintiff does not affect an investor’s share in any potential recovery.
Robbins Geller Rudman & Dowd LLP, a global leader in securities fraud and shareholder litigation, has demonstrated a remarkable track record, topping ISS Securities Class Action Services’ rankings multiple years in succession. The firm recovered over $2.5 billion for investors in 2024 alone and has historically secured some of the largest recoveries ever seen, demonstrating its significant expertise in high-stakes legal battles over securities fraud.
For more detailed information about the lawsuit and participation, investors are directed to visit www.rgrdlaw.com.
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