{"id":96244,"date":"2025-07-11T02:35:05","date_gmt":"2025-07-11T02:35:05","guid":{"rendered":"https:\/\/pakistaninewspaperlist.com\/news\/dickinson-wright-files-lawsuit-against-john-doe-naked-short-sellers-of-datavault-ai-common-stock\/"},"modified":"2025-07-11T02:35:05","modified_gmt":"2025-07-11T02:35:05","slug":"dickinson-wright-files-lawsuit-against-john-doe-naked-short-sellers-of-datavault-ai-common-stock","status":"publish","type":"post","link":"https:\/\/pakistaninewspaperlist.com\/news\/dickinson-wright-files-lawsuit-against-john-doe-naked-short-sellers-of-datavault-ai-common-stock\/","title":{"rendered":"Dickinson Wright Files Lawsuit Against \u2018John Doe\u2019 \u2018Naked\u2019 Short-Sellers of Datavault AI Common Stock"},"content":{"rendered":"
\n

WASHINGTON, D.C., July 10, 2025 (GLOBE NEWSWIRE) — via IBN \u2013 <\/b>On Thursday, July 10, 2025, Dickinson Wright filed a lawsuit on behalf of the law firm\u2019s client, Datavault AI, Inc.<\/b><\/a> (Nasdaq: DVLT)<\/b>, (Datavault AI), alleging securities fraud (stock manipulation), defamation and intentional tort against \u201cJohn Doe\u201d \u201cnaked\u201d short sellers of Datavault AI common stock on the Nasdaq Stock Market. The Complaint alleges that the short sellers engaged in the unlawful practice of \u201cnaked short selling\u201d and other manipulative devices \u2013 including marking the close, painting the tape, spoofing and layering. The Complaint further alleges that the \u201cJohn Does\u201d for themselves or acting in concert with the \u201cnaked\u201d short sellers also published materially false and misleading and defamatory information on internet chat room \u201cStocktwits\u201d and on LinkedIn. The lawsuit, filed in federal court in Chicago, seeks unspecified compensatory and special damages and other relief.<\/p>\n

Jacob Frenkel, Securities Enforcement Practice Chair at Dickinson Wright PLLC and lead counsel for Datavault AI, stated: \u201cThis lawsuit on behalf of our dynamic client Datavault AI challenges the too-often abusive, fraudulent and manipulative practice of \u2018naked\u2019 short selling, illegal behavior that is a scourge on early stage and entrepreneurial public companies. My expectation is that once we identify the perpetrators of these activities that the Department of Justice and the SEC have determined to be actionable, I am encouraged that the evidence will support amending our lawsuit to add civil RICO \u2013 civil racketeering \u2013 allegations against the soon-to-be known violators.\u201d<\/p>\n

Datavault AI (Nasdaq: DVLT), as set forth in the lawsuit, rebranded earlier this year to reflect its focus on AI-driven data visualization, valuation, and monetization, alongside high-performance computing solutions. Datavault AI\u2019s operations and product offerings come from the company\u2019s two core business divisions — data science and acoustic science. The company\u2019s proprietary software uses blockchain, AI, and machine learning to enable secure data management, real-time valuation, and tokenization. The Complaint tells the company\u2019s story for 2025 — referencing its strategic partnerships formed this year, reviewing its eight material disclosures of positive news reported to the SEC, touching on its financial performance as reported in three SEC filings, and highlighting seven press releases each of which mention favorable business developments. The Complaint then juxtaposes this positivity against the fraudulent, manipulative, unlawful and defamatory conduct of the defendants, which has depressed the company\u2019s stock price despite all of the positive news. Frenkel noted that \u201csuch lawsuits are a platform from which a company can pursue significant compensatory damages.\u201d<\/p>\n

\u201cNaked\u201d short selling is illegal but remains a pervasive trading practice that often goes undetected. The SEC has conveyed in the past its belief that \u201cnaked\u201d short selling undercuts the stability of financial institutions and undermines investor confidence in U.S. markets. The SEC also has stated that this practice \u201cdisrupt[s] the functioning of the securities markets that could threaten fair and orderly markets.\u201d Frenkel, who has provided expert domestic and international media commentary over many years regarding damaging \u201cshort and distort\u201d schemes and \u201cnaked\u201d shorting then added: \u201cGiven my background with the SEC\u2019s Enforcement Division and as a state and federal criminal prosecutor, I look forward to holding accountable those individuals and pursuing aggressively through our judicial system those who have intentionally and fraudulently harmed Datavault on our markets.\u201d\u00a0 <\/p>\n

The Complaint, filed as Data Vault AI, Inc. v. Does 1-50, Roe Corporations 1-50, and XYZ LLCs 1-50<\/i>, bears case number 1:25-cv-07815 in the United States District Court for the Northern District of Illinois, Eastern Division. The Judges presiding over the case are the Hon. Joan Gottschall and Magistrate Judge Young B. Kim. Jacob Frenkel (Member, Washington, D.C.) is lead counsel to Datavault AI, and Brooks Westergard (Member, Reno) and David Becker (Member, Chicago) also are litigation counsel to Datavault AI.<\/p>\n

About Dickinson Wright\u2019s Government Investigations and Securities Enforcement Practice<\/u><\/b>
Dickinson Wright\u2019s team of experienced former federal and state regulators and prosecutors regularly assists clients across all industries in formal and informal government investigations, enforcement proceedings, administrative actions and litigation by the SEC, PCAOB, FINRA, OTC Markets, DOJ (and US Attorney\u2019s Offices), securities exchanges, state regulators, and Congressional committees. Our practice also includes federal grand jury proceedings, internal investigations for audit committees and boards of directors, special litigation committees of boards of directors, securities class action litigation, stockholder derivative and corporate governance litigation, and the defense and pursuit of whistleblower claims. The team brings deep experience and insight — having been on both sides — and judgment to all matters, capable of advancing creative and aggressive strategies when warranted.<\/p>\n

About Dickinson Wright<\/u><\/b>
Dickinson Wright is a general practice business law firm with more than 500 attorneys among more than 40 practice areas and 16 industry groups. The firm has 23 offices in the U.S. and Canada, including Arizona, California, Colorado, Florida, Illinois, Kentucky, Michigan, Nevada, Ohio, Tennessee, Texas, Washington, and Washington, D.C. The firm\u2019s Canadian offices are located in Toronto and Windsor.<\/p>\n

Dickinson Wright offers our clients a distinctive combination of superb client service, exceptional quality, value for fees, industry expertise, and business acumen. As one of the few law firms with ISO\/IEC 27001:2013 certification and one of the only firms with ISO\/IEC 27701:2019 certification, Dickinson Wright has built state-of-the-art, independently-verified risk management procedures, security controls, and privacy processes for our commercial transactions. Dickinson Wright lawyers are known for delivering commercially-oriented advice on sophisticated transactions and have a remarkable record of wins in high-stakes litigation. Dickinson Wright lawyers are regularly cited for their expertise and experience by Chambers, Best Lawyers, Super Lawyers, and other leading independent law firm evaluating organizations.<\/p>\n

Lead Counsel Contact: <\/b>Jacob Frenkel, Chair, Government Investigations and Securities Enforcement Practice, 202-466-5953, jfrenkel@dickinsonwright.com<\/a><\/p>\n

Firm Media Contact:<\/b>\u00a0 Kelly Durso, Associate Director of Marketing Communications, 313-223-3085, kdurso@dickinsonwright.com<\/a><\/p>\n

Wire Service Contact<\/b>:
IBN
Austin, Texas
www.InvestorBrandNetwork.com<\/a>
512.354.7000 Office
Editor@InvestorBrandNetwork.com<\/a><\/p>\n

\n <\/div>\n","protected":false},"excerpt":{"rendered":"

WASHINGTON, D.C., July 10, 2025 (GLOBE NEWSWIRE) — via IBN \u2013 On Thursday, July 10, 2025, Dickinson Wright filed a lawsuit on behalf of the law firm\u2019s client, Datavault AI, Inc. (Nasdaq: DVLT), (Datavault AI), alleging securities fraud (stock manipulation), defamation and intentional tort against \u201cJohn Doe\u201d \u201cnaked\u201d short sellers of Datavault AI common stock […]<\/p>\n","protected":false},"author":2,"featured_media":96245,"comment_status":"","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"om_disable_all_campaigns":false,"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"default","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","ast-disable-related-posts":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"fifu_image_url":"https:\/\/ml.globenewswire.com\/media\/YTEwMjNjNTMtM2QzMi00M2VlLTk3NDktY2Y5NTljZjY5MDYxLTUwMDE0OTMyNC0yMDI1LTA3LTExLWVu\/tiny\/DickinsonWright.png","fifu_image_alt":"","footnotes":""},"categories":[208],"tags":[],"class_list":["post-96244","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-globenewswire"],"acf":[],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/pakistaninewspaperlist.com\/news\/wp-json\/wp\/v2\/posts\/96244","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/pakistaninewspaperlist.com\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/pakistaninewspaperlist.com\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/pakistaninewspaperlist.com\/news\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/pakistaninewspaperlist.com\/news\/wp-json\/wp\/v2\/comments?post=96244"}],"version-history":[{"count":0,"href":"https:\/\/pakistaninewspaperlist.com\/news\/wp-json\/wp\/v2\/posts\/96244\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/pakistaninewspaperlist.com\/news\/wp-json\/wp\/v2\/media\/96245"}],"wp:attachment":[{"href":"https:\/\/pakistaninewspaperlist.com\/news\/wp-json\/wp\/v2\/media?parent=96244"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/pakistaninewspaperlist.com\/news\/wp-json\/wp\/v2\/categories?post=96244"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/pakistaninewspaperlist.com\/news\/wp-json\/wp\/v2\/tags?post=96244"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}