#United States #New York #Levi & Korsinsky #Securities Class Action #Datavault AI

Datavault AI Inc. Faces Class Action Lawsuit

In a significant legal development, Datavault AI Inc. (NASDAQ: DVLT) has been hit with a class action lawsuit initiated by Levi & Korsinsky, LLP. This lawsuit targets shareholders who acquired securities between September 4, 2024, and October 30, 2025. The firm is reaching out to investors who may have suffered financial losses during this period.

Context of the Lawsuit

The lawsuit follows a dramatic 19.44% drop in DVLT shares in one trading session on October 31, 2025. The decline was sparked by a report from Wolfpack Research, which alleged that the company's public claims regarding its partnerships and the activity on its blockchain data exchange were misleading. This type of volatility raises critical questions about not just Datavault AI’s practices, but also the broader implications for its shareholders.

Key Allegations

The primary allegations revolve around the company’s purported insider trading during the Class Period. It is claimed that insiders sold a total of 38,065,752 shares for over $73.8 million in proceeds, contributing to the inflated share price before the downturn. Levi & Korsinsky's Joseph E. Levi emphasizes, "When market-moving announcements are later questioned, the resulting single-session price decline can represent substantial harm to shareholders."

Investigation Insights

The short-seller report pointed out several crucial misconceptions and alleged inaccuracies, such as:

• - A questionable $150 million strategic investment announcement from Scilex Holding Company, which reportedly only had $4.1 million in cash available.
• - A supposed $2 million non-refundable licensing agreement with Nature's Miracle, which indicated limited liquidity with just $9,511 reported at the time.
• - A defense partnership with Burke Products that has a history of low contract values and insufficient project awards.
• - The significant $210 million intellectual property acquisition that pivoted WiSA Technologies into Datavault, which faced scrutiny regarding its legitimacy.
• - Minimal trading activity noted on the Datavault platform, with claims of lackluster engagement from investors.

This red flag has raised concerns among stakeholders, emphasizing the necessity for thorough investigation into the company's financial disclosures and operational transparency.

Impact on Investors

For investors, the implications of the class action are extensive. Those who bought shares during the speculative surge may be eligible to recover losses given the circumstances surrounding the significant price drop. It’s crucial for affected investors to collect brokerage records showing purchase details to facilitate potential claims.

Next Steps for Affected Shareholders

Affected investors are encouraged to contact Levi & Korsinsky by October 5, 2026, to evaluate their eligibility for lead plaintiff status. Key steps include:
1. Gathering Documentation: Compile all relevant trading records, including dates and amounts.
2. Contacting Legal Representatives: Initiating contact with legal representatives will provide access to necessary guidance and recourse.
3. Understanding Legal Rights: Shareholders should remain informed about their rights and options under the ongoing legal situation.

For further inquiries, investors can reach out to Joseph E. Levi, Esq. at [email protected] or call (212) 363-7500 for more information regarding the case.

Conclusion

The developments surrounding Datavault AI Inc. highlight critical concerns in the marketplace regarding transparency and the impacts of corporate governance on shareholder investments. This lawsuit serves as a significant reminder of the need for diligence among investors who are navigating the complexities of modern securities trading and corporate integrity.