Friday’s 10 Worst Performing Stocks

8. SoundHound AI Inc. (NASDAQ:SOUN)

Shares of SoundHound AI declined by 11.99 percent at intra-day trading on Friday as investor sentiment was dragged down by the ongoing global trade war and news that it was facing a class action lawsuit alleging the company of making materially false information.

In a statement on Friday, law firm Wolf Haldenstein Adler Freeman & Herz LLP said that a class action lawsuit had been officially filed against SOUN on behalf of a class consisting of all persons and entities that purchased its shares between May 10, 2024, and March 3, 2025.

Last March 4, SOUN announced 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, SOUN said that the company “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.”

According to the law firm, the disclosure of its lack of effective controls was impairing its ability to account for corporate acquisitions.