Investors file lawsuit against SoundHound AI for securities fraud

On May 17, 2025, in Radnor, Pennsylvania, Kessler Topaz Meltzer & Check, LLP announced that a securities class action lawsuit was initiated against SoundHound AI, Inc. for alleged fraud. This lawsuit pertains to investors who purchased SoundHound securities between May 10, 2024, and March 3, 2025, during what is referred to as the Class Period. The complaint asserts that during this timeframe, the company's executives made misleading statements while failing to address significant weaknesses in its internal financial controls. The allegations highlight issues surrounding SoundHound's ability to accurately report finances following acquisitions, particularly its acquisition of Amelia Holdings, Inc. This acquisition, which occurred in August 2024, reportedly resulted in inflated goodwill figures on corporate reports, suggesting that financial presentations to investors were distorted and misleading. Additionally, the company is accused of having internal control weaknesses that created difficulties in its accounting processes. As a consequence, investors face increased uncertainty about the company's financial stability and its capacity to file timely reports with the Securities and Exchange Commission (SEC). Furthermore, the lawsuit indicates that there may have been significant delays in issuing such reports due to unresolved accounting concerns, thereby increasing risks for investors. The formal deadline for investors to be appointed as a lead plaintiff is set for May 27, 2025. The Kessler Topaz Meltzer & Check firm aims to represent the interests of all class members, typically selecting one or a few lead plaintiffs who possess the largest financial stakes in the matter. The unfolding events suggest severe implications for SoundHound AI and its shareholders, as the lawsuit could lead to substantial financial losses if the allegations against the company are upheld in court.