The scrutiny follows SoundHound’s January 2024 acquisition of SYNQ3 and Amelia Holdings. While the company initially framed these deals as a breakthrough for its growth, the narrative shifted on March 4, 2025, when SoundHound announced it could not timely file its 2024 Annual Report. Management cited the complexity of accounting for the new acquisitions and admitted to material weaknesses in internal financial controls.
Kahn Swick & Foti Launches Investigation into SoundHound AI
The law firm Kahn Swick & Foti has launched an investigation into SoundHound AI following a series of financial reporting failures. Led by former Louisiana Attorney General Charles C. Foti, Jr., the inquiry focuses on whether company officers and directors breached their fiduciary duties to shareholders during a period of significant corporate transition.
A subsequent 10-K filing confirmed these systemic issues, revealing that the company’s internal controls were insufficient to accurately account for the recent corporate expansions. This development has already triggered a pending securities class action lawsuit, which alleges that executives failed to disclose critical information to investors. The new investigation by Kahn Swick & Foti aims to determine if further legal violations occurred, potentially impacting long-term shareholders.
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