The complaint centers on a short-seller report published on Oct. 31, 2025, which Datavault claims contained ‘false and malicious’ statements designed to drive down its share price.
- Datavault accused the defendants of orchestrating a ‘short-and-distort’ campaign.
- Following the Wolfpack report’s release, Datavault’s stock fell more than 15%.
- Datavault stated that its blockchain-secured marketplace is fully operational.
Datavault AI (DVLT) announced on Monday that it has filed a lawsuit against Wolfpack Research and its founder, Dan David, alleging defamation and market manipulation.
The complaint centers on a short-seller report published on Oct. 31, 2025, which Datavault claims contained ‘false and malicious’ statements designed to drive down its share price.
Claims of False Reporting
The company accused the defendants of orchestrating a ‘short-and-distort’ campaign and spreading misleading information to profit from a subsequent stock price decline.
The lawsuit alleged that David used Wolfpack Research as a front to distribute deceptive material under the guise of financial analysis. Datavault asserts that Wolfpack’s report misrepresented basic facts about the company’s operations, falsely claiming that its offices were located in a ‘beauty salon’ and that its AI-powered data platform was inactive.
Following the news of the lawsuit, Datavault AI’s stock traded over 17% higher in Monday’s premarket.
Alleged Market Manipulation
The lawsuit further accused Wolfpack and David of exploiting their short positions by triggering a market sell-off. Following the report’s release, Datavault’s stock fell more than 15% on Oct 31.
The complaint stated that the publication’s timing and social media activity were coordinated to maximize financial gain from the stock’s decline.
WolfpackResearch, in its short report, had alleged that Datavault AI engaged in questionable business practices, concerning affiliations, and possible stock promotion schemes.
In the lawsuit, Datavault said its Data Vault platform, a blockchain-secured marketplace for enterprise-level data, is fully operational and experiencing growing engagement.
What Are Stocktwits Users Saying?
On Stocktwits, retail sentiment around the stock remained in ‘bullish’ territory amid ‘normal’ message volume levels.
Bullish Stocktwits users applauded the company’s lawsuit against Wolfpack, saying the move reflects the company’s attempt to look after its shareholders and that the party involved should face the repercussions for false accusations.
DVLT stock has declined by over 17% in 2025 and by more than 7% in the past 12 months.
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