Legal Action Launched for SoundHound Shareholders Following Internal Control Concerns
Investors who bought SOUN shares between May 2024 and March 2025 invited to join class action
Aino Lehtinen 
A class action lawsuit has been filed against SoundHound AI, Inc. (NASDAQ: SOUN) by investors who purchased the company’s shares between May 10, 2024 and March 3, 2025. The complaint, registered under Liles v. SoundHound AI, Inc., No. 25-cv-02915 (N.D. Cal.), alleges violations of the Securities Exchange Act of 1934 and accuses the company and certain senior executives of making false or misleading statements throughout the defined period.
Accounting flaws and acquisition mismanagement at the center
According to the allegations, SoundHound failed to maintain effective internal controls over financial reporting, particularly regarding the accounting treatment of recent acquisitions. It is claimed that the company misrepresented both the severity of these internal control weaknesses and its ability to resolve them. The lawsuit points to inflated goodwill values reported after the acquisition of Amelia Holdings, Inc., which would later require adjustment.
In addition, the integration of both Amelia and SYNQ3 reportedly demanded more time and resources than initially acknowledged. These issues, according to the suit, raised the risk of SoundHound being unable to meet its financial reporting obligations to the U.S. Securities and Exchange Commission (SEC) on time.
Disclosure leads to stock drop
On March 4, 2025, the company publicly announced that it would not be able to file its annual report for 2024 on time. The statement read: “Due to the complexity of accounting for [the SYNQ3 and Amelia acquisitions], the Company require[d] additional time to prepare financial statements and the accompanying notes” and confirmed that “ha[d] identified material weaknesses in its internal control over financial reporting.” Following this announcement, SoundHound shares reportedly declined by nearly 6%.
What is the lead plaintiff role?
Under the Private Securities Litigation Reform Act of 1995, any investor who acquired SOUN securities during the class period may apply to become the lead plaintiff by the deadline of May 27, 2025. The lead plaintiff represents all other class members and selects legal counsel for the case. Serving in this role is not required to benefit from any future financial settlement or judgment, but it gives the plaintiff a direct role in overseeing the litigation.
Robbins Geller’s track record
The case is being led by Robbins Geller Rudman & Dowd LLP, a prominent plaintiffs' firm recognized globally for its work in securities fraud litigation. With over 200 attorneys across 10 offices, the firm has achieved numerous record-breaking settlements, including the historic $7.2 billion recovery in In re Enron Corp. Sec. Litig. In 2024 alone, Robbins Geller reportedly secured more than $2.5 billion in recoveries for investors – surpassing the combined total of the next five firms, based on ISS Securities Class Action Services rankings.
