SoundHound AI's Legal Time Bomb: Act Now or Risk Everything!

The clock is ticking, and SoundHound AI (NASDAQ: SOUN) shareholders are in the crosshairs of a legal and financial crisis that could wipe out their investments—if they don’t act fast. Let’s cut through the noise and lay out why the stakes are higher than ever, and why the May 27, 2025 deadline for joining this class action lawsuit isn’t just a date—it’s a do-or-die moment.

The Crisis: A House of Cards Built on Sand

SoundHound AI’s troubles began with what the lawsuit calls “material weaknesses” in its internal controls—a corporate death knell. The company allegedly botched its accounting for two key acquisitions, Synq3 and Amelia, inflating goodwill and misleading investors about its ability to fix these issues. By March 2025, the fallout was undeniable: SoundHound missed its SEC filing deadline, its stock tanked, and shareholders were left holding the bag.

The data doesn’t lie. When SoundHound admitted on March 4, 2025, it couldn’t file its 2024 financial report on time, shares plummeted 5.9% to $9.72—a stark reminder of how quickly trust evaporates when truth unravels.

Why This Isn’t Just a "Paper Cut"

The allegations go far beyond simple accounting errors. The lawsuit claims SoundHound:
1. Overstated Goodwill: By $5.3M in contingent earnout payments and $3.7M in accounts payable, among other adjustments.
2. Lied About Remediation: Assured investors it had fixed internal control flaws when it clearly hadn’t.
3. Ignored Red Flags: Let these issues fester until delayed filings and SEC scrutiny exposed the rot.

This isn’t a one-off misstep. It’s a pattern of deceit that screams of a broken corporate culture—one where shareholders were treated like pawns in a high-stakes game.

The Regulatory Gauntlet: SEC Scrutiny and Beyond

The SEC isn’t playing around here. SoundHound admitted it failed to design effective controls for complex transactions, including acquisitions—a red flag that could lead to fines, restatements, or even investor restitution demands. Meanwhile, the class action lawsuit, covering purchases from May 10, 2024, to March 3, 2025, is your only shot to claw back losses.

Your Move: Act Before the Deadline—Or Permanently Walk Away

Here’s the bottom line: If you owned SOUN during the class period, you’re not just a shareholder—you’re a victim of alleged fraud. The May 27 deadline is your last chance to join the lawsuit and seek recovery.

Here’s What to Do Now:
1. Contact a Law Firm:
- The Gross Law Firm: (646) 453-8903 |
SoundHound AI Loss Submission Form.
- Glancy Prongay & Murray LLP: (310) 201-9224 | Email: shareholders@glancylaw.com.
- Howard G. Smith: (215) 638-4847 | howardsmith@howardsmithlaw.com.

1. Don’t Wait for the “Lead Plaintiff” Drama: You don’t need to lead the case to recover. Simply register your claim by May 27 to stay in the game.

The Write-Off You Can’t Afford to Miss

SoundHound’s stock may bounce back, but that’s not the point. This isn’t about timing the market—it’s about accountability. If the company lied to you, you deserve justice. The legal system is your leverage, but it’s fleeting.

Final Warning: The window closes on May 27. If you miss it, you’re out. No do-overs. No second chances.

This isn’t just about SoundHound—it’s about protecting your hard-earned money from corporate recklessness. The evidence is clear. The deadline is real. The time to act is now.

The information contained herein is for informational purposes only and does not constitute investment advice. Consult with a financial professional before making any decisions.