Datavault AI Files Federal Lawsuit Alleging Market Manipulation and Defamation

Datavault AI (NASDAQ: DVLT) filed a federal lawsuit Thursday, July 10, in the Northern District of Illinois alleging securities fraud, defamation, and intentional tort tied to naked short selling and online misinformation. The complaint, filed by Dickinson Wright, names unknown defendants including Does 1-50, Roe Corporations 1-50, and XYZ LLCs 1-50, claiming the short sellers used manipulative tactics including spoofing, layering, and marking the close while spreading defamatory falsehoods on Stocktwits and LinkedIn. The lawsuit seeks damages and potential civil RICO claims, representing a significant legal challenge against alleged market manipulation practices.

Lead counsel Jacob Frenkel, Chair of Dickinson Wright's Securities Enforcement Practice, stated the action is aimed at holding accountable those responsible for conduct that has undermined Datavault AI's stock despite a string of positive disclosures, press releases, and strategic partnerships in 2025. This legal action comes at a time when the company has been actively promoting its technological advancements and business developments, making the alleged manipulation particularly damaging to shareholder value and market confidence. The case highlights growing concerns about sophisticated market manipulation techniques that can artificially depress stock prices regardless of a company's fundamental performance.

The lawsuit's implications extend beyond Datavault AI's specific circumstances, potentially setting important precedents for how courts handle allegations of coordinated short selling campaigns combined with online misinformation. By targeting unknown defendants through the Doe designation, the legal strategy acknowledges the challenges of identifying individuals and entities behind complex market manipulation schemes conducted through multiple channels. The inclusion of potential RICO claims suggests the plaintiffs believe they can demonstrate a pattern of racketeering activity, which could significantly increase the legal stakes and potential penalties for any defendants ultimately identified.

This legal action represents one of the more comprehensive challenges to alleged market manipulation tactics in recent years, combining traditional securities fraud allegations with modern concerns about social media-driven misinformation campaigns. The case could influence how regulators and courts approach the intersection of online communication platforms and market activities, particularly as companies increasingly rely on digital channels for investor communications and market disclosures. For more information about the company's developments, visit https://www.datavaultsite.com, and additional updates relating to DVLT are available at https://ibn.fm/DVLT.