Datavault AI readies legal action against short report; key considerations for in-house counsel
Philadelphia, Oct. 31, 2025 - Datavault AI (NASDAQ: DVLT) says a recent Wolfpack Research report is a "short-and-distort" attack built on false and defamatory claims. The Company asserts the report was intended to manipulate DVLT's share price and has caused reputational harm. Wolfpack Research has disclosed a short position.
"It's obvious that these actors are financially benefitting from spreading false information," said Nathaniel T. Bradley, CEO of Datavault AI. "We intend to file suit to hold Wolfpack Research accountable for its malicious conduct and to protect the rights of our shareholders."
Litigation posture and counsel
Datavault AI has retained Paul Hastings LLP and Dickinson Wright PLLC to lead litigation and regulatory strategy. The Company indicates it will pursue all available remedies, including claims based on false statements and market manipulation.
Jacob Frenkel, Securities Enforcement Practice Chair at Dickinson Wright PLLC and lead litigation counsel, stated: "the proper place for such purveyors and backers of 'short and distort' content is in a defendant's chair in a courtroom, and that is exactly where the Company intends to put Wolfpack Research. Such abusive, fraudulent and manipulative practices mislead the market, sow distrust and harm shareholders. Mr. Bradley is committed to acting with the best interest of his Company's shareholders, which is the precise reason for pursuing legal recourse against such defamatory report-writers. The lawsuit will spell out the false and misleading statements with specificity to the point of being a roadmap for federal enforcement authorities also to put the authors and instigators of the Wolfpack Research report in a defendant's chair."
What legal teams should assess immediately
- Potential causes of action: Defamation and business disparagement; tortious interference; Section 10(b) and Rule 10b-5 claims for material misstatements; potential Section 9(a) manipulation theories. See Rule 10b-5 text via Cornell LII: 17 C.F.R. § 240.10b-5.
- Venue and anti-SLAPP risk: Evaluate forum options, personal jurisdiction over the publisher, and anti-SLAPP exposure (procedural posture, fee-shifting). Align filing strategy with discovery goals.
- Fault and falsity: Public-figure standards (actual malice), opinion vs. provably false statements, context cues, and specificity. Prepare a claim chart tying statements to evidence.
- Damages and causation: Stock-price impact analysis, event studies, liquidity effects, analyst coverage changes, and loss causation modeling.
- Regulatory interface: Potential referrals to the SEC or other authorities; coordinate communications to avoid prejudicing concurrent proceedings.
- Preservation and discovery: Litigation holds for internal and third-party data (publisher comms, drafts, social channels, trading records). Subpoenas to platforms hosting the report and related accounts.
- Disclosure hygiene: Confirm Reg FD and safe-harbor use for forward-looking statements. The PSLRA safe harbor is codified at 15 U.S.C. § 78u-5.
- Governance readiness: Board briefings, D&O coverage review, incident-response playbook, insider-trading blackout if needed, and coordinated IR/PR messaging.
Company's IP position and strategic focus
Datavault AI highlights a portfolio of 70+ U.S. and international patents spanning AI-driven data valuation, inaudible audio signal technology, blockchain tokenization frameworks, and enterprise data monetization. The Company cites recent grants in carbon-credit tokenization, virtual-reality data integration, and AI-driven audio tracking systems.
"Our strategy is rooted in IP and execution, not speculation," said Bradley. "The technology we've developed is already creating value across industries - from digital identity and healthcare to acoustic data and real-world asset tokenization. That foundation is unshakable."
Profile: Nathaniel T. Bradley
Nathaniel T. Bradley is an American inventor and entrepreneur with more than two decades in mobile marketing, audio processing, AI, and data monetization. He founded AudioEye, Inc. (NASDAQ: AEYE) and led Augme Technologies / Hipcricket, serving Fortune 500 clients.
His recognition includes EY Entrepreneur of the Year Finalist and the Edison Gold Award for Social Impact. At Datavault AI, he has led innovations in AI data valuation, blockchain for real-world asset tokenization, and AI-powered audio communication via the ADIO® technology suite.
Recent milestones
- Strategic alliance with NYIAX to enable smart-contract data exchanges.
- Acquisition of CompuSystems Inc. (CSI) assets to expand event data capabilities.
- Launch of the WiSA E Endeavour™ Receiver Module through the Acoustic Science division.
- Partnership with Nature's Miracle Holding Inc. and Harrison Global Holdings Inc. to launch "The X Club" for the global XRP community.
- 12-month national media series with New to The Street to broaden investor visibility.
- Clarified executive vesting disclosures to reinforce governance transparency.
- Incorporation and preparation to launch four independent data exchanges: International Elements Exchange Inc., International NIL Exchange Inc., Information Data Exchange Inc., and American Political Exchange Inc.
Practical takeaways for counsel
- Map every challenged statement to an evidence file and a damages theory; don't rely solely on intent allegations.
- Plan for early motion practice (anti-SLAPP, 12(b)(6)) and parallel regulatory dialogue.
- Commission an event study early; it frames loss causation and guides settlement posture.
- Use precise, consistent public disclosures. Avoid mixing new material claims into litigation press activity without controls.
About Datavault AI
Datavault AI operates a cloud-based platform across Acoustic Science and Data Science divisions. Its technologies include Wisam®, ADIO®, and Sumerian® and systems for spatial and multichannel wireless HD audio, timing/synchronization, and interference cancellation. The Data Science division offers solutions for experiential data perception, valuation, and secure monetization across sports, events, biotech, education, fintech, real estate, healthcare, and energy.
Forward-looking statements
This article includes statements the Company identifies as forward-looking, including planned actions regarding the Wolfpack Research report and future licensing opportunities. These statements involve risks and uncertainties, including litigation outcomes, execution of growth strategies, competitive and regulatory developments, technology shifts, and other factors described in Datavault AI's most recent Annual Report on Form 10-K and Quarterly Reports on Form 10-Q filed with the SEC.
Forward-looking statements speak only as of their date, and the Company disclaims any duty to update them except as required by law.
Your membership also unlocks:
