Datavault AI (NASDAQ: DVLT) has initiated a federal lawsuit in the Northern District of Illinois, targeting unidentified individuals and entities for alleged securities fraud, defamation, and intentional tort. The lawsuit accuses the defendants of engaging in 'naked' short selling and spreading misinformation online to manipulate the company's stock price. Represented by Dickinson Wright, the legal action names Does 1-50, Roe Corporations 1-50, and XYZ LLCs 1-50, accusing them of employing deceptive trading strategies such as spoofing, layering, and marking the close, alongside disseminating false information on platforms like Stocktwits and LinkedIn.
Jacob Frenkel, leading the case as Chair of Dickinson Wright’s Securities Enforcement Practice, stated the lawsuit aims to hold accountable those whose actions have adversely affected Datavault AI's stock value, despite the company's positive developments and strategic partnerships planned for 2025. The lawsuit not only seeks damages but also considers potential civil RICO claims, highlighting the significance of this case for market integrity and the protection of companies from harmful financial practices.
This legal battle brings to the forefront the growing concerns over market manipulation and the influential role of social media in stock price volatility. It represents a pivotal moment for corporate governance and the enforcement of securities laws, as companies like Datavault AI seek legal recourse against alleged malicious actors in the financial markets. For more information on the lawsuit, visit https://ibn.fm/rbueY.
