Class Action Lawsuit Filed Against SoundHound AI, Inc.:
On April 3, 2025, Rosen Law Firm, a leading investor rights law firm, announced the filing of a class action lawsuit on behalf of all persons or entities who purchased the securities of SoundHound AI, Inc. (NASDAQ: SOUN, SOUNW) between May 10, 2024, and March 3, 2025. The lawsuit alleges that SoundHound AI and certain of its executives and directors violated the Securities Exchange Act of 1934 by making false and misleading statements and/or failing to disclose material information.
Allegations of False and Misleading Statements:
According to the complaint, during the Class Period, SoundHound AI made false and misleading statements and/or failed to disclose that:
- The Company was experiencing significant operational challenges and delays in the development and commercialization of its Houndify voice AI platform;
- The Company’s financial results were being negatively impacted by these operational challenges;
- The Company’s revenue growth was slower than represented;
- The Company was experiencing declining user engagement and monetization;
- The Company’s partnerships and collaborations were not providing the expected benefits;
Effect on Individual Investors:
If you purchased SoundHound AI securities during the Class Period, you may be entitled to compensation. The lead plaintiff must move the Court no later than May 27, 2025, to request appointment as lead plaintiff. The lead plaintiff is the investor with the largest financial interest in the relief sought by the class. If you wish to serve as lead plaintiff, you must meet certain legal requirements and must be willing to cooperate with your counsel in the prosecution of the action.
Effect on the World:
The filing of this class action lawsuit against SoundHound AI is significant as it highlights the importance of transparency and accuracy in the disclosure of material information by publicly traded companies. The lawsuit may also result in increased scrutiny and potential regulatory action against the Company.
Conclusion:
Investors who purchased SoundHound AI securities during the Class Period and are interested in pursuing their legal rights are encouraged to contact Rosen Law Firm as soon as possible. The filing of this class action lawsuit serves as a reminder to all investors of the importance of accurate and timely disclosure of material information by publicly traded companies.
The outcome of this lawsuit could have far-reaching implications for SoundHound AI and the broader technology industry. As the use of voice AI technology continues to grow and evolve, it is crucial that companies provide clear and transparent information to investors regarding their financial performance and operational challenges.
Stay informed and protect your investments. If you have any questions or would like to discuss this further, please do not hesitate to contact us.
