Bronstein, Gewirtz & Grossman, LLC Files Class Action Lawsuit Against SoundHound AI, Inc.
On April 1, 2025, Bronstein, Gewirtz & Grossman, LLC, a prominent law firm, announced the filing of a class action lawsuit against SoundHound AI, Inc. (“SoundHound” or “the Company”) (NASDAQ:SOUN) and certain of its officers. The complaint alleges that SoundHound and its officers violated the federal securities laws during the Class Period, which spans from May 10, 2024, to March 3, 2025.
Class Definition and Allegations
The lawsuit is brought on behalf of all persons and entities that purchased or otherwise acquired SoundHound securities during the Class Period. The complaint alleges that SoundHound and its officers made false and misleading statements regarding the Company’s business, operations, and financial condition.
Alleged Misrepresentations
According to the complaint, SoundHound and its officers made several misrepresentations during the Class Period. These misrepresentations include:
- Exaggerating the Company’s revenue growth and potential for future growth.
- Downplaying the risks associated with the Company’s business model and financial condition.
- Failing to disclose material information regarding the Company’s financial performance and business prospects.
Impact on Investors
As a result of the alleged misrepresentations, investors purchased SoundHound securities at artificially inflated prices. When the truth was revealed, the price of SoundHound securities declined significantly, causing substantial losses to investors.
Impact on the World
The lawsuit against SoundHound AI, Inc. could have significant implications for the technology industry and the investing public. If the allegations are proven true, it could deter investors from trusting tech companies’ public disclosures and statements, potentially leading to a decrease in investor confidence and a negative impact on the tech industry as a whole.
Conclusion
The filing of this class action lawsuit against SoundHound AI, Inc. is a serious allegation that could have significant consequences for investors and the tech industry. As the case progresses, it is essential for investors to stay informed about the latest developments and potential implications for their investments. We will continue to monitor this situation closely and provide updates as more information becomes available.
Investors who purchased or otherwise acquired SoundHound securities during the Class Period and wish to discuss their legal rights and potential remedies can contact Bronstein, Gewirtz & Grossman, LLC, either by email at [email protected] or by calling (212) 697-6484. The firm offers a free consultation.
