Curated News
By: NewsRamp Editorial Staff
October 13, 2025
Datavault AI Sues Over Naked Short Selling and Social Media Defamation
TLDR
- Datavault AI's lawsuit against short sellers could protect shareholder value and potentially expose manipulative trading tactics that suppressed its stock price.
- Datavault AI filed a federal lawsuit alleging securities fraud through naked short selling, spoofing, layering, and defamatory online posts on Stocktwits and LinkedIn.
- This legal action aims to restore market integrity and protect companies from manipulative practices that undermine legitimate business growth and innovation.
- Datavault AI's lawsuit reveals sophisticated market manipulation tactics including spoofing and layering while the company continues advancing AI experience and Web 3.0 technologies.
Impact - Why it Matters
This lawsuit represents a significant development in the ongoing battle against market manipulation and highlights the growing threat of coordinated short attacks combined with social media disinformation campaigns. For investors, it underscores the vulnerability of public companies to sophisticated manipulation tactics that can artificially depress stock prices regardless of fundamental performance. The case could set important precedents for how courts handle securities fraud involving anonymous online actors and social media platforms. If successful, it may provide stronger protections for companies facing similar coordinated attacks and could lead to increased regulatory scrutiny of short selling practices and online financial communications. For retail investors, this case demonstrates the importance of distinguishing between legitimate market movements and potentially manipulative activities that can distort true company value.
Summary
Datavault AI (NASDAQ: DVLT) has taken bold legal action against unknown defendants in a federal lawsuit filed Thursday, July 10, in the Northern District of Illinois. The artificial intelligence company, represented by law firm Dickinson Wright, alleges securities fraud, defamation, and intentional tort tied to what it describes as manipulative "naked" short selling practices. The complaint specifically names Does 1-50, Roe Corporations 1-50, and XYZ LLCs 1-50 as defendants accused of using sophisticated market manipulation tactics including spoofing, layering, and marking the close while simultaneously spreading defamatory falsehoods on social media platforms Stocktwits and LinkedIn. Lead counsel Jacob Frenkel, Chair of Dickinson Wright's Securities Enforcement Practice, emphasized that this legal action aims to hold accountable those responsible for undermining Datavault AI's stock performance despite the company's string of positive disclosures, press releases, and strategic partnerships throughout 2025.
Datavault AI stands as a pioneering force in AI experience, valuation, and monetization within the Web 3.0 environment, operating through its innovative cloud-based platform. The company's comprehensive solutions are delivered through two key divisions: the Acoustic Science Division featuring WiSA®, ADIO®, and Sumerian® patented technologies that provide foundational spatial and multichannel wireless HD sound transmission, and the Data Science Division that leverages Web 3.0 and high-performance computing for experiential data perception, valuation, and secure monetization. Their technology serves multiple industries including sports & entertainment, biotech, education, fintech, real estate, healthcare, and energy through the Information Data Exchange® (IDE) that enables Digital Twins and licensing of name, image, and likeness (NIL). Investors can learn more about Datavault AI through the InvestorBrandNetwork and access additional information at www.datavaultsite.com, while the full legal details are available through the comprehensive press release distributed via DefenseWireNews, one of 70+ brands within the Dynamic Brand Portfolio at IBN that provides specialized communications for defense contractors, aerospace firms, and other mission-critical companies.
Source Statement
This curated news summary relied on content disributed by InvestorBrandNetwork (IBN). Read the original source here, Datavault AI Sues Over Naked Short Selling and Social Media Defamation
