According to the Complaint, SoundHound AI, Inc. provides an independent voice AI platform that purportedly enables businesses across industries to deliver high-quality conversational experiences to their customers. This lawsuit was filed against SoundHound and two of its Officers.

In January 2024, SoundHound acquired all of the issued and outstanding equity of SYNQ3, a provider of voice AI and other technology solutions to the restaurant industry, for total purchase consideration of $15.8 million. Then, in August 2024, the Company acquired Amelia Holdings, Inc., a privately-held conversational AI software company involved in the development and delivery of AI and automation solutions and related services, for a "[p]urchase price of $80M in cash and equity, with partial payment and assumption of Amelia's debt, as well as future earnout potential aligned to revenue milestone achievements".

The Complaint alleges that, throughout the Class Period, Defendants made materially false and misleading statements regarding the Company's business, operations, and prospects. Specifically, the Complaint alleges Defendants made false and/or misleading statements and/or failed to disclose that: (i) the material weaknesses in SoundHound's internal controls over financial reporting impaired the Company's ability to effectively account for corporate acquisitions; (ii) 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; (iii) as a result of the foregoing material weaknesses, SoundHound's reported goodwill following the Amelia Acquisition was inflated and would need to be corrected; (iv) further, SoundHound would likely require extra time and expense to effectively account for the SYNQ3 and Amelia Acquisitions; (v) 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; and (vi) as a result, the Company's public statements were materially false and misleading at all relevant times.