SOUN INVESTORS: Kirby McInerney LLP Reminds SoundHound AI, Inc. Investors of Important Deadline and Encourages Investors to Contact the Firm
NEW YORK, NY / ACCESS Newswire / May 20, 2025 /The law firm of Kirby McInerney LLP reminds investors that a class action lawsuit has been filed in the U.S. District Court for the Northern District of California on behalf of those who acquired SoundHound AI, Inc. ("SoundHound" or the "Company") (NASDAQ:SOUN) securities during the period from May 10, 2024, through March 3, 2025 ("the Class Period"). Investors have until May 27, 2025, to apply to the Court to be appointed as lead plaintiff in the lawsuit.
[LEARN MORE ABOUT THE CLASS ACTION]
On March 4, 2025, SoundHound filed a Notification of Late Filing on Form 12b-25 with the SEC, stating that the Company would be unable to file its 10-K annual report for the fiscal year ended December 31, 2024, within the prescribed time period. The Notification of Late Filing said that "[d]ue to the complexity of accounting for [the Company 's prior acquisitions of Synq3, Inc. and Amelia Holdings, Inc.], the Company requires additional time to prepare financial statement and accompanying notes." The Notification of Late Filing further stated that the Company "has identified material weaknesses in its internal control over financial reporting. These material weaknesses continue to exist as of December 31, 2024. The Company expects to file its Form 10-K within the fifteen-day period provided under Rule 12b-25, no later than by March 18, 2025." On this news, the price of SoundHound shares declined by $0.60 per share, from $10.32 per share on March 3, 2025, to close at $9.72 on March 4, 2025.
The complaint alleges that defendants, throughout the Class Period, failed to disclose that: (1) the material weaknesses in SoundHound 's internal controls over financial reporting impaired the Company 's ability to effectively account for corporate acquisitions; (2) in addition, the Company overstated the extent to which it had remediated, and/or its ability to remediate, the material weaknesses in its internal controls over financial reporting; (3) as a result of the foregoing material weaknesses, SoundHound 's reported goodwill following the Amelia Acquisition was inflated and would need to be corrected; (4) further, SoundHound would likely require extra time and expense to effectively account for the SYNQ3 and Amelia Acquisitions; and (5) the foregoing increased the risk that the Company would be unable to timely file certain financial reports with the United States Securities and Exchange Commission ("SEC").
If you purchased or otherwise acquired SoundHound securities, have information, or would like to learn more about this investigation, please contact Thomas W. Elrod of Kirby McInerney LLP by email at investigations@kmllp.com or fill out the form below, to discuss your rights or interests with respect to these matters without any cost to you.
Kirby McInerney LLP is a New York-based plaintiffs ' law firm concentrating in securities, antitrust, whistleblower, and consumer litigation. The firm 's efforts on behalf of shareholders in securities litigation have resulted in recoveries totaling billions of dollars. Additional information about the firm can be found at Kirby McInerney LLP 's website.
This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.
Contacts
Kirby McInerney LLP
Thomas W. Elrod, Esq.
212-699-1180
https://www.kmllp.com
investigations@kmllp.com
SOURCE:Kirby McInerney LLP
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