SoundHound AI(SOUN) Prnewswire·2025-03-29 08:06Core 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]. Summary by Sections Allegations - Robbins LLP is investigating allegations that SoundHound AI, Inc. did not disclose material weaknesses in its internal controls over financial reporting, which affected its ability to account for corporate acquisitions [2]. - The complaint states that SoundHound overstated its remediation efforts regarding these weaknesses, leading to inflated reported goodwill following the Amelia Acquisition [2]. - The company is expected to require additional time and resources to account for the SYNQ3 and Amelia Acquisitions, increasing the risk of delays in filing financial reports with the SEC [2]. Recent Developments - On March 4, 2025, SoundHound announced it would be unable to timely file its Annual Report for 2024 due to complexities in accounting for the SYNQ3 and Amelia Acquisitions, and acknowledged material weaknesses in its internal controls [3]. - Following this announcement, SoundHound's stock price dropped by 9.72 per share [3]. Next Steps - 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]. - Participation in the case is not required to be eligible for recovery, and shareholders can choose to remain absent class members [4].