SoundHound Board Sued by Shareholder Over Acquisition Accounting

April 9, 2025, 8:09 PM UTC

SoundHound AI Inc. leadership concealed that it hadn’t remedied accounting deficiencies after a pair of 2024 acquisitions, ultimately recording a $9.3 million decrease to its recognized goodwill, a shareholder derivative action said.

Share prices slid almost 5.9% on March 4 after the sound-recognition technology company said it needed more time to file an annual federal report due to its persistent financial reporting weaknesses, a shareholder told the US District Court for the Northern District of California on Tuesday. In filing that report a week later, SoundHound disclosed it had to correct errors in its preliminary purchase price allocation that existed ...

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