Datavault AI Inc. (NASDAQ: DVLT) has taken a bold step by filing a federal lawsuit in the Northern District of Illinois, alleging securities fraud, defamation, and intentional tort related to 'naked' short selling and the spread of online misinformation. The lawsuit, filed by Dickinson Wright, targets unknown defendants identified as Does 1-50, Roe Corporations 1-50, and XYZ LLCs 1-50, accusing them of employing manipulative tactics such as spoofing, layering, and marking the close, alongside disseminating defamatory falsehoods on platforms like Stocktwits and LinkedIn.
The legal action seeks damages and explores potential civil RICO claims, underscoring the company's commitment to holding accountable those whose actions have allegedly undermined its stock value. This comes despite Datavault AI's series of positive disclosures, press releases, and strategic partnerships in 2025. Jacob Frenkel, Chair of Dickinson Wright’s Securities Enforcement Practice, emphasized the lawsuit's aim to address conduct that has negatively impacted the company's market position.
This lawsuit highlights the growing challenges companies face in the digital age, where misinformation and manipulative trading practices can significantly affect stock prices and investor confidence. The case against the unnamed defendants could set a precedent for how similar allegations are handled in the future, potentially leading to stricter regulations and oversight of online financial discussions and short selling practices.
For more details on the lawsuit, visit https://ibn.fm/rbueY.
