Datavault AI (NASDAQ: DVLT) filed a federal lawsuit Thursday, July 10, in the Northern District of Illinois alleging securities fraud, defamation, and intentional tort tied to “naked” short selling and online misinformation. Filed by Dickinson Wright, the Complaint names unknown defendants—Does 1-50, Roe Corporations 1-50, and XYZ LLCs 1-50—and claims the short sellers used manipulative tactics including spoofing, layering, and marking the close while spreading defamatory falsehoods on Stocktwits and LinkedIn.
The lawsuit seeks damages and potential civil RICO claims. Lead counsel Jacob Frenkel, Chair of Dickinson Wright’s Securities Enforcement Practice, stated the action is aimed at holding accountable those responsible for conduct that has undermined Datavault AI’s stock despite a string of positive disclosures, press releases, and strategic partnerships in 2025. The full press release can be viewed at https://ibn.fm/rbueY.
Datavault AI is leading the way in AI experience, valuation, and monetization of assets in the Web 3.0 environment. The company’s cloud-based platform provides comprehensive solutions with a collaborative focus in its Acoustic Science and Data Science Divisions. The Acoustic Science Division features WiSA, ADIO and Sumerian patented technologies and industry first foundational spatial and multichannel wireless HD sound transmission technologies with IP covering audio timing, synchronization and multi-channel interference cancellation. The Data Science Division leverages the power of Web 3.0 and high-performance computing to provide solutions for experiential data perception, valuation and secure monetization.
Datavault AI’s cloud-based platform provides comprehensive solutions serving multiple industries, including HPC software licensing for sports & entertainment, events & venues, biotech, education, fintech, real estate, healthcare, energy and more. The Information Data Exchange (IDE) enables Digital Twins, licensing of name, image, and likeness (NIL) by securely attaching physical real-world objects to immutable metadata objects, fostering responsible AI with integrity. Datavault AI’s technology suite is completely customizable and offers AI and Machine Learning (ML) automation, third-party integration, detailed analytics and data, marketing automation and advertising monitoring. The company is headquartered in Beaverton, OR. More information is available at www.datavaultsite.com.
This lawsuit underscores the growing concern over market manipulation and the impact of defamatory online content on publicly traded companies. By taking legal action, Datavault AI aims to protect its shareholders and restore confidence in its stock, which it believes has been unfairly targeted despite its positive developments.
