Datavault AI Files Federal Lawsuit Alleging Market Manipulation and Defamation
TL;DR
Datavault AI's lawsuit against alleged securities fraud could protect its stock value, offering investors a clearer advantage in a stabilized market.
Datavault AI alleges securities fraud through manipulative short selling tactics and defamation, seeking damages and civil RICO claims to address stock manipulation.
Holding manipulative short sellers accountable through Datavault AI's lawsuit promotes fairness and integrity in the stock market, benefiting all stakeholders.
Datavault AI, a leader in AI and Web 3.0 technologies, takes legal action against stock manipulation, highlighting the intersection of law and finance.
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Datavault AI (NASDAQ: DVLT) has taken a significant step by filing a federal lawsuit in the Northern District of Illinois, alleging securities fraud, defamation, and intentional tort related to 'naked' short selling and the spread of online misinformation. The lawsuit, filed by Dickinson Wright, targets unknown defendants—referred to as Does 1-50, Roe Corporations 1-50, and XYZ LLCs 1-50—accusing them of employing manipulative trading tactics such as spoofing, layering, and marking the close, alongside disseminating defamatory statements on platforms like Stocktwits and LinkedIn.
The legal action seeks not only damages but also explores potential civil RICO claims, underscoring the severity of the allegations. 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, despite the company's positive disclosures, press releases, and strategic partnerships in 2025.
This lawsuit sheds light on the broader issue of market manipulation and the role of social media in influencing stock prices, a growing concern for publicly traded companies. Datavault AI's move could set a precedent for how companies combat such challenges, potentially leading to stricter regulations or more robust legal frameworks to protect against similar activities in the future.
For more details on the lawsuit, visit https://ibn.fm/rbueY.
Curated from InvestorBrandNetwork (IBN)
