Rosen Law Firm Files Class Action Lawsuit Against SoundHound AI, Inc.
On April 1, 2025, Rosen Law Firm, a leading global investor rights law firm, announced the filing of a class action lawsuit on behalf of purchasers of SoundHound AI, Inc. (NASDAQ: SOUN, SOUNW) securities between May 10, 2024, and March 3, 2025. The lawsuit alleges that SoundHound AI and certain of its officers and directors violated the Securities Exchange Act of 1934 by making false and misleading statements and omitting material information related to the company’s financial condition and business prospects.
Allegations of False Statements and Omissions
According to the complaint, SoundHound AI made false and misleading statements regarding its financial performance and business prospects. Specifically, the company reported revenue growth and increasing user engagement, which were later found to be inaccurate. The lawsuit also alleges that SoundHound AI failed to disclose material information about its business, including declining user engagement and financial difficulties.
Implications for Investors
The filing of this class action lawsuit may have significant implications for investors who purchased SoundHound AI securities during the Class Period. If the allegations are proven true, these investors may be entitled to recover their losses. The lead plaintiff in the case is expected to be determined by May 27, 2025, and investors interested in serving as lead plaintiff should contact Rosen Law Firm as soon as possible.
Impact on the Technology Industry and the Market
The filing of this class action lawsuit against SoundHound AI could have broader implications for the technology industry and the market as a whole. It highlights the importance of transparency and accuracy in financial reporting and the consequences of failing to meet these standards. Additionally, it may lead to increased scrutiny of other technology companies and their reporting practices.
Additional Information from Online Sources
According to reports from other financial news outlets, SoundHound AI’s financial troubles came to light following an investigation by the Securities and Exchange Commission (SEC). The SEC alleges that SoundHound AI inflated its revenue figures and misrepresented user engagement metrics. The company’s stock price dropped significantly following the announcement of the SEC investigation.
Conclusion
The filing of a class action lawsuit against SoundHound AI by Rosen Law Firm raises concerns about the accuracy of the company’s financial reporting and its business prospects. Investors who purchased SoundHound AI securities during the Class Period may be entitled to recover their losses. The broader implications of this case for the technology industry and the market as a whole remain to be seen.
- Rosen Law Firm files class action lawsuit against SoundHound AI, Inc.
- Allegations of false statements and omissions regarding financial performance and business prospects.
- Lead plaintiff to be determined by May 27, 2025.
- Implications for investors who purchased SoundHound AI securities during the Class Period.
- Broader implications for the technology industry and the market as a whole.
- Additional information from SEC investigation.
