Overview

A class action lawsuit has been filed against SoundHound AI, Inc. (“SoundHound” or the “Company”) and certain of the Company’s current and former senior executive officers alleging violations of the federal securities laws.  The Company’s common stock trades in an efficient market on the Nasdaq under the ticker symbol “SOUN.”

The SoundHound class action lawsuit was brought on behalf of all persons and entities who purchased or otherwise acquired SoundHound securities between May 10, 2024, and March 3, 2025, both dates inclusive (the “Class Period”).

SoundHound, a company offering an independent voice artificial intelligence (“AI”) platform for businesses, has long acknowledged material weaknesses in its internal controls over financial reporting.  The Company admitted it lacked adequate oversight and failed to update or implement new controls quickly enough in response to rapid growth.  These shortcomings affected nearly all financial accounts and disclosures, particularly the Company’s ability to properly account for complex financing transactions.  Despite this, SoundHound repeatedly assured investors that it was actively working to design and implement effective internal controls to remedy these issues.

In 2024, SoundHound undertook two significant acquisitions to bolster its position in the voice AI market.  In January, it acquired SYNQ3, a voice AI provider for the restaurant industry, for $15.8 million.  Then, in August, it acquired Amelia Holdings, Inc., a conversational AI and automation software company, for $80 million in cash and equity, along with debt assumption and potential earnout payments tied to performance.  These deals were presented by SoundHound as strategic moves that contributed to a “breakthrough year,” enhancing its leadership in the AI space.

However, according to a class action lawsuit, SoundHound’s public statements during the Class Period were materially false and misleading.  The Company allegedly failed to disclose that its internal control weaknesses compromised its ability to accurately account for acquisitions, and it misrepresented the extent of progress in addressing these issues.  As a result, SoundHound’s reported goodwill after the Amelia acquisition was inflated and likely required adjustment.  Additionally, the Company would incur significant time and cost burdens in accounting for both acquisitions.

These undisclosed issues increased the likelihood that SoundHound would miss U.S. Securities and Exchange Commission filing deadlines, thereby misleading investors about the Company’s financial health and stability.  The lawsuit claims that these misrepresentations caused investors to overestimate the Company’s operational capabilities and prospects, resulting in significant financial losses when the true extent of the deficiencies came to light.

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If you purchased or otherwise acquired SoundHound securities between May 10, 2024, and March 3, 2025, both dates inclusive, and you wish to serve as lead plaintiff in this lawsuit, we encourage you to submit your information to DiCello Levitt LLP via the form on this page. 

You can also contact DiCello Levitt partner Brian O’Mara by calling (888) 287-9005 or at [email protected]. 

The deadline to apply to the Court to serve as lead plaintiff in the SoundHound class action lawsuit is May 27, 2025.