Lawsuit Alert: Investors who lost money with shares of SoundHound AI, Inc. (NASDAQ: SOUN) should contact the Shareholders Foundation

An investor, who purchased shares of SoundHound AI, Inc. (NASDAQ: SOUN), filed a lawsuit over alleged violations of Federal Securities Laws by SoundHound AI, Inc. in connection with certain allegedly false and misleading statements.

Investors who purchased shares of SoundHound AI, Inc. (NASDAQ: SOUN) have certain options and for certain investors are short and strict deadlines running. Deadline: May 27, 2025. NASDAQ: SOUN investors should contact the Shareholders Foundation at mail@shareholdersfoundation.com or call +1(858) 779 - 1554.

Santa Clara, CA based SoundHound AI, Inc. develops independent voice artificial intelligence (AI) solutions that enables businesses across automotive, TV, and IoT, and to customer service industries to deliver high-quality conversational experiences to their customers in the United States, Korea, France, Japan, Germany, and internationally.

In January 2024, SoundHound AI, Inc. (NASDAQ: SOUN) acquired all of the issued and outstanding equity of SYNQ3, a provider of voice AI and other technology solutions to the restaurant industry, for total purchase consideration of $15.8 million (the "SYNQ3 Acquisition").

Then, in August 2024, the Company acquired Amelia Holdings, Inc. ("Amelia"), a privately-held conversational AI software company involved in the development and delivery of AI and automation solutions and related services, for a "[p]urchase price of $80M in cash and equity, with partial payment and assumption of Amelia's debt, as well as future earnout potential aligned to revenue milestone achievements" (the "Amelia Acquisition"). SoundHound has stated that these "strategic acquisitions" contributed to the Company's "breakthrough year" in 2024, "expanding [its] leadership position in voice and conversational AI."

SoundHound AI, Inc. reported that its annual Total Revenue rose from $445.87 million in 2023 to $84.69 million in 2024, and that its Net Loss increased from $88.93 million in 2023 to $350.68 million in 2024.

On March 4, 2025, SoundHound AI, Inc. disclosed in a filing with the SEC that it would be unable to timely file its Annual Report for 2024 (the "2024 10-K"). 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."
Then, on March 11, 2025, SoundHound AI, Inc. filed its 2024 10-K. In the 2024 10-K, SoundHound stated, in relevant part, that, as of December 31, 2024, "[t]he Company did not design and maintain effective controls related to the identification of and accounting for certain non-routine, unusual or complex transactions, including the accounting for complex financing transactions and acquisitions"-disclosing for the first time that the Company's lack of effective controls was impairing its ability to account for corporate acquisitions.
Further, in discussing the Amelia Acquisition, the 2024 10-K stated, in relevant part, that, during the year ended December 31, 2024, as a result of the foregoing material weaknesses related to the Company's ability to account for corporate acquisitions, SoundHound "recorded adjustments to correct certain errors in the preliminary purchase price allocation that existed as of [August 6, 2024 (the "Amelia Acquisition Date")]," which "decreased the contingent earnout consideration by $5.3 million, decreased the accounts payable by $3.7 million, decreased the accrued liabilities by $1.2 million, increased deferred revenue by $0.3 million and increased the deferred tax liabilities by $0.7 million" and "[a]s a result of the adjusted [Amelia Acquisition Date] fair value of contingent earnout consideration recognized, assets acquired and liabilities assumed, we recorded a decrease of $9.3 million to the goodwill recognized."

Shares of SoundHound AI, Inc. (NASDAQ: SOUN) declined from $24.98 per share on December 26, 2024, to as low as $6.75 per share on April 04, 2025.

The plaintiff claims that between May 10, 2024 and March 3, 2025, the Defendants made false and/or misleading statements and/or failed to disclose that the material weaknesses in SoundHound's internal controls over financial reporting impaired the Company's ability to effectively account for corporate acquisitions, that 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, that as a result of the foregoing material weaknesses, SoundHound's reported goodwill following the Amelia Acquisition was inflated and would need to be corrected, that further, SoundHound would likely require extra time and expense to effectively account for the SYNQ3 and Amelia Acquisitions, that the foregoing increased the risk that the Company would be unable to timely file certain financial reports with the United States Securities and Exchange Commission ("SEC"), and that as a result, the Company's public statements were materially false and misleading at all relevant times.

Those who purchased shares of SoundHound AI, Inc. (NASDAQ: SOUN) have certain options and should contact the Shareholders Foundation.

Contact:
Michael Daniels
Shareholders Foundation, Inc.
3111 Camino Del Rio North
Suite 423
San Diego, CA 92108
Tel: +1-(858)-779-1554
E-Mail: mail@shareholdersfoundation.com

About Shareholders Foundation, Inc.
The Shareholders Foundation, Inc. is a professional portfolio monitoring and settlement claim filing service, and an investor advocacy group, which does research related to shareholder issues and informs investors of securities lawsuits, settlements, judgments, and other legal related news to the stock/financial market. Shareholders Foundation, Inc. is in contact with a large number of shareholders and offers help, support, and assistance for every shareholder. The Shareholders Foundation, Inc. is not a law firm. Referenced cases, investigations, and/or settlements are not filed/initiated/reached and/or are not related to Shareholders Foundation. The information is provided as a public service. It is not intended as legal advice and should not be relied upon.

This release was published on openPR.