Important Information for Investors: SoundHound AI Class Action Lawsuit
On April 1, 2025, the law firm of Robbins Geller Rudman & Dowd LLP announced that purchasers or acquirers of SoundHound AI, Inc. (SoundHound) securities between May 10, 2024, and March 3, 2025, inclusive (the “Class Period”), have until May 27, 2025, to seek appointment as lead plaintiff in a securities class action lawsuit captioned Liles v. SoundHound AI, Inc. This lawsuit alleges that SoundHound and certain of its officers and directors violated the Securities Exchange Act of 1934 by making false and misleading statements and failing to disclose material information to investors.
Background on SoundHound AI, Inc.
SoundHound AI, Inc. is a leading innovator in voice-enabled technology. The company’s mission is to create a world where technology understands and responds to people’s needs and preferences in real time. SoundHound’s flagship product, Hound, is a voice-enabled digital assistant that uses the company’s proprietary SoundHound Inc. (SoundHoundNet) and Houndify platforms to deliver quick and accurate responses to user queries.
Allegations in the Class Action Lawsuit
The complaint alleges that SoundHound and its executives made false and misleading statements regarding the company’s financial performance and business prospects. Specifically, the lawsuit alleges that SoundHound failed to disclose that it was experiencing significant customer churn and declining revenue growth. The complaint further alleges that the defendants made false and misleading statements about the company’s market position and competitive advantages.
Impact on Individual Investors
If you purchased or acquired SoundHound securities during the Class Period, you may be able to recover your losses as a member of the proposed class. The lead plaintiff will act on behalf of all members of the class in managing the litigation. If a settlement is reached, the lead plaintiff will help ensure that the settlement is fair, reasonable, and adequate. If you wish to serve as lead plaintiff, you must meet certain legal requirements and must file a motion with the court before the deadline.
Impact on the World
The outcome of this class action lawsuit could have significant implications for the voice-enabled technology industry as a whole. If the allegations are proven, it could potentially lead to increased scrutiny of other companies in the space and increased transparency around their financial performance and business prospects. It could also serve as a reminder to investors to carefully evaluate the accuracy and completeness of information provided by publicly traded companies.
Conclusion
If you purchased or acquired SoundHound securities during the Class Period and believe that you may have been harmed as a result of the alleged misrepresentations, you may be able to recover your losses as a member of the proposed class. The deadline to seek appointment as lead plaintiff is May 27, 2025. For more information, contact Robbins Geller Rudman & Dowd LLP.
- SoundHound AI, Inc. (NASDAQ: SOUN)
- Class Period: May 10, 2024, to March 3, 2025
- Lead Plaintiff Deadline: May 27, 2025
- Captioned: Liles v. SoundHound AI, Inc.
- Allegations of false and misleading statements and failure to disclose material information
- Impact on individual investors: potential to recover losses as a member of the proposed class
- Impact on the world: increased scrutiny of the voice-enabled technology industry and increased transparency around financial performance and business prospects
