Important Information for Investors: SoundHound AI Class Action Lawsuit
On April 10, 2025, the law firm of Robbins Geller Rudman & Dowd LLP announced that investors who purchased or acquired SoundHound AI, Inc. (SOUN) 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. 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 failing to disclose material information.
Details of the Lawsuit
The complaint alleges that during the Class Period, SoundHound AI made false and misleading statements and failed to disclose material information regarding its financial condition and business prospects. Specifically, the complaint alleges that SoundHound AI failed to disclose that its revenue growth was decelerating, that its revenue recognition practices were deficient, and that its financial statements were not in compliance with GAAP.
Impact on Individual Investors
If you purchased or acquired SoundHound AI securities during the Class Period and suffered financial losses, you may be eligible to be a lead plaintiff in this class action lawsuit. As a lead plaintiff, you would have certain responsibilities and rights, including the right to approve the settlement and the right to participate in important decisions in the case.
Impact on the World
The Securities Exchange Act of 1934 is designed to protect investors from fraudulent and deceptive practices in the securities markets. Class action lawsuits, like the one filed against SoundHound AI, play an important role in enforcing these protections. If the allegations in the lawsuit are proven true, it could have significant implications for the company, its executives, and its investors. It could also serve as a reminder to other companies in the industry to ensure that they are providing accurate and transparent information to investors.
Conclusion
If you purchased or acquired SoundHound AI securities during the Class Period and believe that you have suffered financial losses, it is important that you take action. You may be eligible to be a lead plaintiff in this class action lawsuit and have certain responsibilities and rights. If you are unsure about your options, you may want to consider consulting with a securities attorney. Meanwhile, the outcome of this lawsuit could have far-reaching implications for the company, its executives, and the securities industry as a whole.
- Robbins Geller Rudman & Dowd LLP announces class action lawsuit against SoundHound AI, Inc.
- Class Period: May 10, 2024, to March 3, 2025.
- Lead plaintiff deadline: May 27, 2025.
- Allegations of false and misleading statements and failure to disclose material information.
- Individual investors may be eligible to be a lead plaintiff.
- Class action lawsuits play an important role in enforcing securities laws.
- Outcome of the lawsuit could have significant implications for the company and the securities industry.
