Voice AI platform provider SoundHound AI (SOUN) is facing a class action lawsuit, which alleges the company of making materially false and misleading statements about its financial reporting and internal controls. The lawsuit concerns investors who purchased SOUN stock between May 10, 2024, and March 3, 2025.
The class action comes after the company bought SYNQ3 and Amelia Holdings to strengthen its role in the voice AI market and disclosed a delay in filing its 10-K annual report for 2024.
SOUN Accused of Misleading Investors
In key allegations, SoundHound is said to have hidden the seriousness of its internal control weaknesses and overstated its progress in addressing these issues.
Specifically, SOUN failed to properly account for the acquisitions, leading to inflated goodwill and major financial adjustments. The company decreased the goodwill from the Amelia acquisition by $9.3 million due to errors in the purchase price allocation.
The lawsuit claims that the company’s false statements about its ability to account for acquisitions and remediate its internal control weaknesses artificially inflated its stock price.
Overall, SOUN is accused of misleading investors, resulting in financial losses.
What Is the Price Target for SOUN Stock?
Turning to Wall Street, SOUN stock has a Moderate Buy consensus rating based on three Buys and two Holds assigned in the last three months. At $15.80, the average SoundHound AI stock price target implies a 92.68% upside potential.
