SoundHound AI(SOUN) Prnewswire·2025-04-05 02:25Core Viewpoint - A class action 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]. Group 1: Allegations and Issues - The complaint alleges that SoundHound did not disclose material weaknesses in its internal controls, which impaired its ability to account for corporate acquisitions [2]. - SoundHound overstated its remediation efforts regarding these internal control weaknesses [2]. - The reported goodwill following the Amelia Acquisition was inflated and would require correction [2]. - The company is expected to need additional time and resources to account for the SYNQ3 and Amelia Acquisitions due to these weaknesses [2]. - There is an increased risk that SoundHound may fail to file certain financial reports with the SEC in a timely manner [2]. Group 2: Stock Market Reaction - On March 4, 2025, SoundHound announced it would be unable to timely file its Annual Report for 2024, citing complexities in accounting for the SYNQ3 and Amelia Acquisitions [3]. - Following this announcement, SoundHound's stock price dropped by 9.72 per share [3]. Group 3: Class Action Participation - 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]. - Shareholders do not need to participate in the case to be eligible for recovery and can remain absent class members if they choose [4]. Group 4: Company Background - Robbins LLP is a recognized leader in shareholder rights litigation, focusing on helping shareholders recover losses and improve corporate governance since 2002 [5].