Important Information for Investors: SoundHound AI Class Action Lawsuit
On April 14, 2025, Robbins Geller Rudman & Dowd LLP announced that investors who purchased or acquired 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 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.
Details of the Lawsuit
The complaint alleges that SoundHound made false and/or misleading statements and/or failed to disclose material information during the Class Period. Specifically, the lawsuit alleges that SoundHound failed to disclose that:
- The company’s revenue growth was not as strong as represented;
- The company faced significant competition from larger players in the market;
- The company’s partnerships and collaborations were not as lucrative as represented;
- The company’s financial statements were not accurate.
As a result of these allegedly false and misleading statements, SoundHound’s stock traded at artificially inflated prices during the Class Period.
Impact on Individual Investors
If you purchased or acquired SoundHound securities during the Class Period and suffered losses, you may be eligible to participate in the class action lawsuit. You may also be able to serve as a lead plaintiff, which would allow you to make decisions regarding the direction of the lawsuit and potentially recover more significant damages.
Impact on the World
The SoundHound class action lawsuit is just one example of the growing trend of securities fraud lawsuits against technology companies. This trend highlights the importance of transparency and accuracy in financial reporting, particularly in the rapidly evolving technology sector.
Moreover, securities fraud lawsuits can have far-reaching consequences, including damaging the reputation of the company and potentially leading to regulatory investigations. In the case of SoundHound, the lawsuit could result in significant financial damages and potentially even criminal charges.
Conclusion
The SoundHound class action lawsuit is an important development for investors in the technology sector. It serves as a reminder that accuracy and transparency in financial reporting are crucial, particularly in a rapidly evolving industry. If you purchased or acquired SoundHound securities during the Class Period and believe you may have suffered losses as a result, it is important to consult with an experienced securities fraud attorney as soon as possible.
As the legal process unfolds, it will be important to closely monitor developments related to the SoundHound class action lawsuit and the technology sector more broadly. Stay informed and protect your investments.
