Why SoundHound AI, Inc. (SOUN) Went Down Today

We recently published a list of These 10 Stocks Were Sold Down Today, And Here’s Why. In this article, we are going to take a look at where SoundHound AI, Inc. (NASDAQ:SOUN) stands against other stocks that were sold down today.

Ten mid-cap stocks were sold down on Monday, bucking a wider market optimism, amid the lack of catalysts to spark buying appetite, while investors continued to digest the firms’ own developments affecting their businesses.

The Dow Jones rose by only 0.32 percent, while the S&P 500 and the tech-heavy Nasdaq each inched up by 0.09 percent and 0.02 percent, respectively. Meanwhile, the 10 companies booked losses as high as 5 to 16 percent.

In this article, we list the names of the worst-performing stocks and detail the reasons behind their decline.

To come up with the list, we considered only the stocks with a $2 billion market capitalization and $5 million in trading volume.

A software engineer focused on a computer screen, writing code to create a conversational assistant.

SoundHound AI, Inc. (NASDAQ:SOUN)

SoundHound AI declined by 8.22 percent on Monday to end at $10.27 apiece following the revival of a class action lawsuit alleging the company of making materially false information.

Shareholder law firms revived their own notifications on Monday, encouraging investors who lost money from their SoundHound AI, Inc. (NASDAQ:SOUN) stocks between May 10, 2024 and March 3, 2025 to approach them and lead as plaintiff in the lawsuit.

The case stemmed from SoundHound AI, Inc.’s (NASDAQ:SOUN) announcement on March 4 that it was unable to file its annual report for 2024 due to the complexity of accounting for the SYNQ3 and Amelia acquisitions.

The company said it required additional time to prepare financial statements and accompanying notes and that it had identified material weaknesses in its internal control over financial reporting.

Subsequently, on March 11, the AI firm said that it “did not design and maintain effective controls related to the identification of and accounting for certain non-routine, unusual or complex transactions, including the accounting for complex financing transactions and acquisitions.”

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Disclosure: None. This article is originally published at Insider Monkey.