SoundHound AI Faces Shareholder Scrutiny Following Late Filing Notice

SoundHound AI, Inc. (NASDAQ: SOUN) is under investigation by The Schall Law Firm, a Los Angeles-based shareholder rights litigation firm, following the company’s notification to the U.S. Securities and Exchange Commission (SEC) that it would not be able to submit its annual report on time. The investigation centers on whether the company may have provided misleading statements or omitted critical information that could have influenced investor decisions.

The concerns stem from a Form 12b-25 filing submitted by SoundHound on March 4, 2025, in which the company stated it would not meet the deadline for its Form 10-K annual report due to “the complexity of accounting.” In the same filing, SoundHound disclosed that it “has identified material weaknesses in its internal control over financial reporting,” further noting that these issues were still present as of December 31, 2024. The company added that it intends to file the delayed report within the fifteen-day extension allowed under regulatory rules, no later than March 18, 2025.

This disclosure has raised questions among shareholders and prompted legal scrutiny into whether SoundHound breached its responsibilities under federal securities laws. The potential impact of material weaknesses in internal controls and the delayed disclosure of such matters are key aspects being reviewed by the legal team handling the case. Investors may be particularly concerned with the timing of the disclosure and whether they had all necessary information to evaluate the risks associated with their investments.

The Schall Law Firm is inviting shareholders who may have suffered losses to contact the firm to discuss their legal rights. Brian Schall, the firm’s principal attorney, can be reached at 310-301-3335, or via email at bschall@schallfirm.com. The firm also provides further details and participation options on its official website, www.schallfirm.com. Participation in the investigation does not carry any cost for shareholders at this stage.

Specializing in securities class action lawsuits and investor representation, The Schall Law Firm handles cases involving possible violations of disclosure obligations by publicly traded companies. Investors in SOUN stock are being urged to evaluate their options and stay informed as the investigation proceeds.