Glancy Prongay & Murray LLP Announces Securities Fraud Class Action Lawsuit Against SoundHound AI, Inc.
Los Angeles, CA – Glancy Prongay & Murray LLP, a renowned national shareholder rights law firm, has filed a securities fraud class action lawsuit on behalf of investors who bought or otherwise acquired SoundHound AI, Inc. (“SoundHound” or the “Company”) (NASDAQ: SOUN) securities between May 10, 2024, and March 3, 2025. The lawsuit alleges that SoundHound and certain of its executives violated the Securities Exchange Act of 1934.
Class Period and Lead Plaintiff
The class period spans from May 10, 2024, when SoundHound went public through an initial public offering (“IPO”) priced at $15 per share, to March 3, 2025. If you purchased or otherwise acquired SoundHound securities during this period, you may be a class member and eligible to participate in the securities fraud class action.
Allegations and Lawsuit Details
The complaint alleges that SoundHound and its executives made false and misleading statements regarding the Company’s financial condition and business prospects. Specifically, the lawsuit alleges that SoundHound failed to disclose:
- Inaccurate financial statements and projections
- Inadequate internal controls and disclosure controls
- Lack of sufficient revenue growth
- Unrealistic expectations regarding the commercial success of its products
As a result of these alleged false statements, SoundHound’s stock price was artificially inflated during the class period. When the truth was revealed, the stock price declined significantly.
Important Dates and Deadlines
If you suffered a loss on your SoundHound securities during the class period, you have until May 27, 2025, to file a lead plaintiff motion. The lead plaintiff is the representative party for all class members in the lawsuit. The lead plaintiff will be determined based on various factors, including the size of their investment and their interest in pursuing the litigation.
Impact on Individual Investors and the World
The securities fraud class action lawsuit against SoundHound could potentially result in significant damages for affected investors. The lawsuit seeks to recover compensatory damages, including any losses incurred due to the artificially inflated stock price during the class period.
Beyond the financial implications for individual investors, this lawsuit also highlights the importance of accurate financial reporting and disclosure. Misrepresentations and omissions in financial reporting can lead to substantial losses for investors and undermine public trust in the financial markets.
Conclusion
Glancy Prongay & Murray LLP’s securities fraud class action lawsuit against SoundHound AI, Inc. marks another step in holding companies accountable for providing accurate financial information to investors. If you purchased or otherwise acquired SoundHound securities between May 10, 2024, and March 3, 2025, and suffered losses as a result, you may be eligible to participate in the lawsuit. For more information, please contact Glancy Prongay & Murray LLP.
While the outcome of this lawsuit remains to be seen, it serves as a reminder of the importance of transparency and accuracy in financial reporting. Investors rely on this information to make informed decisions, and misrepresentations or omissions can have serious consequences.
