📣 The Lawsuit Announcement 🚨

A law firm has announced that investors who have experienced substantial losses with SoundHound AI, Inc. (SOUN) have the opportunity to lead a class action lawsuit. This class action alleges securities fraud against the company and its management.

👉 The core goal is to organize affected investors into a collective legal action, making it easier for shareholders to pursue claims related to their losses.

The notice emphasizes that investors who suffered losses of $50,000 or more are specifically encouraged to contact the firm.

🏢 Company Context 🤖

SoundHound AI, Inc. (SOUN) is a publicly traded company focused on artificial intelligence technology. While the press release doesn't detail its product line, the mention of acquisitions like Amelia and SYNQ3 shows it is actively expanding its operational capacity.

👉 Understanding SOUN means understanding the volatile AI sector, where growth expectations and financial reporting can change rapidly.

⚖️ What is Securities Fraud? 📜

Since this is a legal document, it's vital to understand the terms. Securities fraud is a legal claim that a company misled investors by providing false or incomplete information to artificially boost its stock price.

👉 The lawsuit suggests that the company made positive statements about its business, but those statements were allegedly misleading because they weren't supported by accurate financial data.

🚨 The Core Allegations — The "What Went Wrong" ⚠️

The class action complaint alleges that during a specific period (between May 10, 2024, and March 3, 2025), SoundHound failed to disclose several critical financial issues to investors.

The firm’s complaint focuses on six main points, which include:

1. Weak Internal Controls: Management failed to disclose that there were "material weaknesses" in the company’s internal financial controls. These controls are the systems that ensure accurate accounting.
2. Overstated Remediation: They are accused of overstating how much the company had fixed or could fix regarding these internal control weaknesses.
3. Inflated Goodwill: Because of these weaknesses, the goodwill reported after the Amelia Acquisition was alleged to be artificially inflated.
4. Acquisition Risks: The flaws created a higher risk and required more time and expense for subsequent acquisitions, specifically SYNQ3 and Amelia.
5. SEC Filing Risk: The financial weaknesses increased the risk that the company would fail to file required financial reports on time with the Securities and Exchange Commission (SEC).
6. Misleading Statements: Consequently, the company's positive statements about its business and prospects were allegedly misleading.

🗓️ Key Dates & Next Steps ➡️

This is an action-oriented notice with clear deadlines for interested parties.

• Lead Plaintiff Deadline: Investors must contact the law firm to participate in the class action before May 27, 2025.
• Getting Involved: Shareholders do not need to take immediate action to be considered part of the class action—they can simply retain their own counsel or take no action and remain an absent member.
• How to Contact: Interested investors must contact the Law Offices of Howard G. Smith directly via email at [email protected], by phone at (215) 638-4847, or visiting www.howardsmithlaw.com.

⚠️ Upside & Risks

👍 Potential Upside: If the lawsuit is successful, the class action could result in monetary compensation for investors who suffered verified losses due to the alleged misrepresentations.

⚠️ Key Risk: Remember that this is a legal advertisement summarizing the allegations made by a law firm, not a finding of fact. Lawsuits are complicated, lengthy processes, and there is no guarantee that the claims will prove accurate in court.

🧠 The Analogy

Think of a company’s internal controls like the safety railings on a construction site. If the railings are weak, a big mistake (like an acquisition) could happen. If the company tells you the railings are perfectly strong when they are actually faulty, that misinformation is what the lawsuit alleges.

🧩 Final Takeaway

This press release is an alert from a law firm, organizing investors to challenge alleged misrepresentations regarding SOUN's financial health and internal controls between May 2024 and March 2025. If you are an investor with significant losses, the critical deadline to participate is May 27, 2025.

Shareholders with losses of $50,000 or more are encouraged to contact the firm.  BENSALEM, Pa.-, May 23, 2025 /PRNewswire/ -- The Law Offices of Howard G. Smith announces that investors with substantial losses have opportunity to lead the securities fraud class action lawsuit against SoundHound AI, Inc. ("SoundHound" or the "Company") (NASDAQ: SOUN). IF YOU ARE AN INVESTOR WHO SUFFERED A LOSS IN SOUNDHOUND AI, INC. (SOUN), CONTACT THE LAW OFFICES OF HOWARD G. SMITH BEFORE MAY 27, 2025 (LEAD PLAINTIFF DEADLINE) TO PARTICIPATE IN THE ONGOING SECURITIES FRAUD LAWSUIT. Contact the Law Offices of Howard G. Smith to discuss your legal rights by email at [email protected], by telephone at (215) 638-4847 or visit our website at www.howardsmithlaw.com. What Is The Lawsuit About? The complaint filed alleges that, between May 10, 2024 and March 3, 2025, Defendants failed to disclose to investors 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) 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) SoundHound would likely require extra time and expense to effectively account for the SYNQ3 and Amelia Acquisitions; (5) the foregoing increased the risk that the Company would be unable to timely file certain financial reports with the SEC; and (6) as a result, Defendants' positive statements about the Company's business, operations, and prospects were materially misleading and/or lacked a reasonable basis at all relevant times. Contact Us To Participate or Learn More:   If you wish to learn more about this class action, or if you have any questions concerning this announcement or your rights or interests with respect to the pending class action lawsuit, please contact: Howard G. Smith, Esq., Law Offices of Howard G. Smith, 3070 Bristol Pike, Suite 112, Bensalem, Pennsylvania 19020, Call us at: (215) 638-4847Email us at: [email protected], Visit our website at: www.howardsmithlaw.com. To be a member of the class action you need not take any action at this time; you may retain counsel of your choice or take no action and remain an absent member of the class action. This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules. Contact Us: Law Offices of Howard G. SmithHoward G. Smith, Esquire215-638-4847[email protected]www.howardsmithlaw.com SOURCE Law Offices of Howard G. Smith

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