Datavault AI Files Federal Lawsuit Alleging Market Manipulation and Defamation

Datavault AI (NASDAQ: DVLT) has taken legal action 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, represented by Dickinson Wright, targets unidentified parties referred to as Does 1-50, Roe Corporations 1-50, and XYZ LLCs 1-50, alleging they employed manipulative trading strategies such as spoofing, layering, and marking the close, alongside disseminating false statements on platforms like Stocktwits and LinkedIn. The legal complaint seeks damages and explores the possibility of civil RICO claims, aiming to hold the perpetrators accountable for actions that have adversely affected Datavault AI's stock performance, despite the company's positive developments and strategic partnerships in 2025.

Jacob Frenkel, leading the case as Chair of Dickinson Wright’s Securities Enforcement Practice, emphasized the lawsuit's goal to address and rectify the damage caused by these alleged manipulative practices. This legal move underscores the broader issue of market manipulation and the importance of safeguarding companies' reputations and shareholder value in the face of unfounded allegations and unethical trading practices.