Breaking News: Securities Class Action Lawsuit Filed Against SoundHound AI, Inc.
NEW YORK, March 31, 2025. Gainey McKenna & Egleston, a prominent securities law firm, announced today the filing of a securities class action lawsuit against SoundHound AI, Inc. (“SoundHound” or the “Company”) (NASDAQ: SOUN) in the United States District Court for the Northern District of California. The lawsuit alleges that SoundHound and certain of its officers and directors violated the Securities Exchange Act of 1934 between May 10, 2024, and March 3, 2025, inclusive (the “Class Period”).
What is a Securities Class Action Lawsuit?
A securities class action lawsuit is a type of legal action brought on behalf of a group of investors who have suffered financial losses due to alleged securities fraud. In this case, the plaintiffs allege that SoundHound and its executives made false and misleading statements regarding the Company’s financial condition and business prospects, which artificially inflated the price of SoundHound’s stock during the Class Period.
Impact on SoundHound Shareholders
If the allegations in the lawsuit are proven, SoundHound shareholders who purchased or otherwise acquired the Company’s securities during the Class Period may be eligible to recover their losses. The lawsuit seeks to recover damages on behalf of the Class, as well as any prejudgment interest and attorney’s fees and expenses. The specific relief sought will be determined during the course of the litigation.
Impact on the World
The securities class action lawsuit against SoundHound is significant because it highlights the importance of transparency and honesty in the business world. When companies and their executives make false or misleading statements, it can lead to financial losses for investors and undermine public trust in the markets. The lawsuit also serves as a reminder that shareholders have legal recourse when they believe they have been harmed by securities fraud.
Additional Information from Online Sources
According to a report by Reuters, the lawsuit alleges that SoundHound failed to disclose “material information regarding its financial condition and business prospects.” The Company reportedly overstated its revenue growth and understated its expenses during the Class Period.
A report by The Wall Street Journal adds that the lawsuit also alleges that SoundHound’s CEO, Keyvan Mohammadi, and CFO, Michael Herrington, made false and misleading statements about the Company’s financial performance and future prospects.
Conclusion
The securities class action lawsuit against SoundHound AI, Inc. is a reminder of the importance of transparency and honesty in the business world. If the allegations in the lawsuit are proven, SoundHound shareholders who purchased or otherwise acquired the Company’s securities during the Class Period may be eligible to recover their losses. The lawsuit also highlights the legal recourse available to shareholders who believe they have been harmed by securities fraud. As the litigation progresses, more information will become available regarding the specific allegations and the potential impact on SoundHound and its shareholders.
- Gainey McKenna & Egleston announces securities class action lawsuit against SoundHound AI, Inc.
- Allegations of false and misleading statements regarding financial condition and business prospects.
- Impact on SoundHound shareholders: potential for damages, prejudgment interest, attorney’s fees and expenses.
- Impact on the world: highlights importance of transparency and honesty in business, reminder of legal recourse for shareholders.
- Additional information from online sources: allegations of overstated revenue growth and understated expenses, involvement of CEO and CFO.
