Datavault AI (NASDAQ: DVLT) has taken a significant legal step by filing a federal lawsuit in the Northern District of Illinois, accusing unknown defendants of securities fraud, defamation, and intentional tort related to 'naked' short selling and the spread of online misinformation. The lawsuit, filed by Dickinson Wright, targets individuals and entities identified as Does 1-50, Roe Corporations 1-50, and XYZ LLCs 1-50, alleging they employed manipulative trading tactics such as spoofing, layering, and marking the close, alongside disseminating defamatory statements on platforms like Stocktwits and LinkedIn.
The legal action seeks not only damages but also explores the possibility of civil RICO claims, underscoring the severity of the allegations. Jacob Frenkel, Chair of Dickinson Wright’s Securities Enforcement Practice and lead counsel for the case, emphasized the lawsuit's goal to hold accountable those whose actions have adversely affected Datavault AI's stock performance, despite the company's positive disclosures and strategic partnerships in 2025.
This lawsuit sheds light on the broader issue of market manipulation and the impact of online misinformation on stock integrity. For investors and the industry at large, the case represents a critical examination of how manipulative practices and defamatory content can undermine a company's valuation and investor confidence. The outcome of this lawsuit could set a precedent for how similar cases are handled in the future, potentially leading to stricter regulations and oversight to combat market manipulation and protect companies from unfounded attacks.
For more details on the lawsuit, visit https://ibn.fm/rbueY.
