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SoundHound AI Plunges 9.15% Amid Legal Challenges
Generated by AI AgentAinvest Movers Radar
Monday, Apr 7, 2025 4:45 am ET1min read
On April 7, 2025,
AI's stock experienced a significant drop of 9.15% in pre-market trading, reflecting investor concerns and potential legal challenges.SoundHound AI, Inc. is currently facing a class action lawsuit, with investors who purchased securities between May 10, 2024, and March 3, 2025, having the opportunity to seek appointment as lead plaintiff by May 27, 2025. The lawsuit alleges that the company and its executives made false or misleading statements regarding material weaknesses in internal controls over financial reporting, which impacted the accuracy of reported goodwill following acquisitions.
On March 4, 2025, SoundHound disclosed that it would be unable to timely file its annual report for 2024 due to the complexity of accounting for recent acquisitions and identified material weaknesses in its internal controls. This disclosure led to a nearly 6% drop in the company's stock price, highlighting the market's sensitivity to financial reporting issues.
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