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 false information online. The lawsuit, represented by Dickinson Wright, targets individuals and entities 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 defamatory statements on platforms like Stocktwits and LinkedIn.
Jacob Frenkel, Chair of Dickinson Wright’s Securities Enforcement Practice, emphasized the lawsuit's goal to hold accountable those whose actions have negatively impacted Datavault AI's stock value, despite the company's positive developments and strategic partnerships in 2025. The legal action seeks damages and explores potential civil RICO claims, underscoring the serious implications of market manipulation and the spread of misinformation on investor confidence and company valuation.
This case sheds light on the broader issue of market integrity and the challenges companies face in combating coordinated attacks that can undermine their stock performance and reputation. The outcome of this lawsuit could set a precedent for how similar cases are handled in the future, emphasizing the need for transparency and accountability in financial markets.
