Key Takeaways
- Investors are suing SoundHound AI, accusing the company of failing to address serious accounting issues related to its acquisitions.
- After an almost 15% stock drop, legal firms are representing investors who are seeking compensation.
- Meanwhile, OpenAI has successfully won its bid to consolidate 12 copyright lawsuits.
SoundHound AI, an AI-powered voice technology platform, has been sued after allegedly misleading investors with false statements regarding its accounting practices.
The lawsuit comes as leading AI firm OpenAI continues to face its own wave of legal challenges, highlighting the increasing legal scrutiny across the AI industry.
On Thursday, April 3, OpenAI won a bid to consolidate several high-profile copyright lawsuits into a single case.
SoundHound AI’s Financials
The law firm Kessler Topaz Meltzer & Check filed the class action lawsuit on Thursday, April 3, claiming that SoundHound failed to fully disclose issues with its financial reporting, mainly related to the accounting of its corporate acquisitions.
The AI firm allegedly gave the impression that it had resolved weaknesses in its internal financial controls, while in reality, it had not taken sufficient action.
On March 4, 2025, SoundHound disclosed that it could not file its 2024 financial report on time due to “the complexity of accounting for” its previously announced acquisitions of Synq3 and Amelia Holdings.
“SoundHound overstated the extent to which it had remediated, and/or its ability to remediate, the material weaknesses in its internal controls over financial reporting,” the law firm stated in the filing notice.
“As a result of the foregoing material weaknesses, SoundHound’s reported goodwill following the acquisition of Amelia Holdings, Inc. in August 2024 was inflated and required correction,” it added.
Misleading Statements
On March 11, 2025, SoundHound released its full-year 2024 financial report and admitted that, as of the end of 2024, the company did not have proper systems in place to handle complicated financial situations, the lawsuit alleges.
The law firm claims that SoundHound likely needed more time and resources than initially expected to properly manage the accounting for the two companies it acquired—Amelia Holdings and Synq3.
However, instead of informing investors about these risks, the company continued making public statements that the law firm now alleges were misleading.
The ongoing challenges and lawsuit has led to the company’s stock falling by nearly 15% over the past month.
Kessler Topaz Meltzer & Check has urged SoundHound investors “who have suffered significant losses” to contact the firm for more information.
OpenAI Wins Consolidation of Copyright Lawsuits
On Thursday, April 3, a U.S. judicial panel in New York approved the consolidation of multiple copyright cases filed against OpenAI by authors, news organizations, and entertainment industry figures.
Several lawsuits filed in California—including those brought by comedian Sarah Silverman and other writers—have now been moved to a federal court in Manhattan.
These cases will join similar lawsuits already filed there by The New York Times and authors such as George R. R. Martin and John Grisham.
Last year, OpenAI petitioned the judicial panel to consolidate 12 lawsuits into one, arguing that the cases involved “the same underlying allegations: that OpenAI used plaintiffs’ copyrighted works to train certain large language models.”
Most plaintiffs opposed consolidation, stating their cases were too distinct to be combined. Nevertheless, the judges sided with OpenAI’s request.
“We welcome this development and look forward to making it clear in court that our models are trained on publicly available data, grounded in fair use, and supportive of innovation,” an OpenAI spokesperson said.
Kurt Robson is a London-based reporter at CCN, specialising in the fast-moving worlds of crypto and emerging technology. He began his career covering local news in Cornwall after graduating from Falmouth University with First Class Honours in Journalism. There, he cut his teeth on everything from council meetings to missing swans.
He quickly rose through the ranks to become a frontline journalist at several of the UK’s leading national newspapers. Over the years, he has interviewed musicians and celebrities, reported from courtrooms and crime scenes, and secured multiple front-page exclusives.
Following the upheaval of the COVID-19 pandemic, Kurt shifted his focus to technology journalism—just ahead of the AI boom. With a natural curiosity and a trained eye for emerging trends, he has found a new rhythm in reporting on innovation.
At CCN, Kurt's work focuses on the cutting edge of crypto, blockchain, AI, and the evolving digital world. Drawing on his background in people-first reporting and his deep interest in disruptive tech, Kurt delivers stories that are insightful, entertaining, and human-centric.
