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As detailed below, the complaint alleges that the Company and its executives violated federal securities laws by making false and/or misleading statements and/or failing to disclose that: (1) Defendants had overstated the economic value to Datavault AI of its various corporate partnerships with, inter alia, Burke, Scilex, and Nature's Miracle; (2) Defendants had overstated the volume of trading activity on the Datavault Platform, which was in fact minimal; (3) the Company's undisclosed connections with Withrow, a convicted felon, when revealed, would cause Datavault AI to incur reputational harm; (4) as a result, Defendants' public statements were materially false and misleading at all relevant times.
On October 31, 2025, Wolfpack Research published a short report on Datavault AI alleging, among other things, that Datavault AI was a "stock promotion" that relied on misleading press releases and "empty claims" concerning artificial intelligence, quantum computing, Web 3.0, and data monetization, and raising concerns about the Company's partnerships, blockchain platform trading activity, and leadership affiliations with a convicted felon. On this news, Datavault AI's stock price fell $0.49 per share, or 19.44%, to close at $2.03 per share on October 31, 2025.
The court-appointed lead plaintiff is the investor with the largest financial interest in the relief sought by the class who is adequate and typical of class members who directs and oversees the litigation on behalf of the putative class. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member. Your ability to share in any recovery is not affected by the decision to serve as a lead plaintiff or not.
Faruqi & Faruqi, LLP also encourages anyone with information regarding Datavault AI's conduct to contact the firm, including whistleblowers, former employees, shareholders and others.
To learn more about the Datavault AI class action, go to www.faruqilaw.com/DVLT or call Faruqi & Faruqi partner Josh Wilson directly at 877-247-4292 or 212-983-9330 (Ext. 1310).
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Frequently Asked Questions (FAQ) for Investors Regarding the Datavault AI Securities Class Action Lawsuit:
What is the Datavault AI securities fraud lawsuit about?
Faruqi & Faruqi, LLP has filed a securities class action lawsuit alleging that Datavault AI Inc. (NASDAQ: DVLT) and certain of its officers and directors made materially false and misleading statements during the Class Period. The complaint alleges that Defendants overstated the economic value of Datavault AI's corporate partnerships, including those with Burke, Scilex, and Nature's Miracle. The lawsuit further alleges that Defendants overstated the volume of trading activity on the Datavault Platform, which was allegedly minimal, and that the Company concealed its connections to an individual named Withrow, allegedly a convicted felon, whose undisclosed affiliation with the Company would, when revealed, cause reputational harm. On October 31, 2025, Wolfpack Research published a short-seller report raising these and related concerns, including allegations that Datavault AI was a "stock promotion" relying on misleading claims regarding artificial intelligence, quantum computing, Web 3.0, and data monetization, following which the Company's stock price allegedly declined $0.49 per share, or approximately 19.44%, to close at $2.03 per share.
Who may be eligible to participate in the lawsuit?
Investors who purchased or otherwise acquired Datavault AI Inc. (NASDAQ: DVLT) securities on the NASDAQ exchange between September 4, 2024 and October 30, 2025, inclusive, may be eligible to participate in this class action lawsuit. Eligibility to participate is not limited to investors who seek appointment as lead plaintiff; any qualifying class member may be entitled to share in any recovery that may be obtained. Investors are encouraged to review their trading records to determine whether their purchases fall within the defined Class Period. If you believe you may be a class member, you may wish to consult with counsel to understand your rights and options.
What is a lead plaintiff, and how can I seek appointment?
A lead plaintiff is a court-appointed representative who serves on behalf of all class members and plays an active role in directing the litigation, including working with counsel to make key strategic decisions in the case. Under the Private Securities Litigation Reform Act, any investor who purchased Datavault AI securities during the Class Period may move the court for appointment as lead plaintiff. The deadline to file a motion for appointment as lead plaintiff is October 5, 2026. Importantly, an investor does not need to seek appointment as lead plaintiff to participate in the lawsuit or to share in any recovery that may result from the action. Class members who do not seek lead plaintiff status will still be represented by lead counsel and may be entitled to participate in any settlement or judgment obtained.
What should investors do if they purchased Datavault AI stock during the Class Period?
Investors who purchased Datavault AI Inc. (NASDAQ: DVLT) securities between September 4, 2024 and October 30, 2025 are encouraged to review their brokerage and trading records to confirm whether their transactions fall within the Class Period. It is advisable to preserve all documentation related to those purchases, including trade confirmations, account statements, and any communications or materials that may be relevant to the allegations described in the complaint. Investors should evaluate their legal options in light of the October 5, 2026 lead plaintiff deadline, as that date governs the right to seek appointment as lead plaintiff, though participation in any potential recovery is not contingent on serving in that role. Faruqi & Faruqi, LLP is available to consult with investors regarding the allegations, their rights, and the options available to them prior to that deadline.
Why should investors contact Faruqi & Faruqi, LLP?
Faruqi & Faruqi, LLP has represented investors in securities litigation for decades and has recovered hundreds of millions of dollars for shareholders. Investors who purchased Datavault AI securities during the Class Period may contact the firm to discuss their legal rights, potential claims, and the lead plaintiff process at no cost or obligation.
Attorney Advertising. The law firm responsible for this advertisement is Faruqi & Faruqi, LLP (www.faruqilaw.com). Prior results do not guarantee or predict a similar outcome with respect to any future matter. We welcome the opportunity to discuss your particular case. All communications will be treated in a confidential manner.
SOURCE Faruqi & Faruqi, LLP
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