Datavault AI (NASDAQ: DVLT) has taken legal action by filing a federal lawsuit in the Northern District of Illinois, accusing unnamed defendants of securities fraud, defamation, and intentional tort related to 'naked' short selling and the dissemination of false information online. The lawsuit, represented 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 strategies such as spoofing, layering, and marking the close, alongside spreading defamatory statements on platforms like Stocktwits and LinkedIn.
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 negatively impacted Datavault AI's stock performance, despite the company's positive developments and strategic partnerships in 2025. The legal action seeks damages and explores potential civil RICO claims, underscoring the severity of the allegations.
This case sheds light on the broader issue of market manipulation and the spread of misinformation in the digital era, posing significant challenges for companies striving to maintain their stock value and reputation. The outcome of this lawsuit could set a precedent for how similar cases are handled in the future, potentially influencing regulatory approaches to online misinformation and manipulative trading practices.
