Datavault AI faces securities class action after 19% stock plunge

Datavault AI shares fell 19 percent to $2.03 after Wolfpack Research alleged overstated partnerships, triggering a securities class action covering September 2024 to October 2025.

"Investors who purchased Datavault securities during the class period may seek lead plaintiff appointment no later than October 5, 2026," Berger Montague PC said in a statement announcing the lawsuit.

The complaint alleges Datavault overstated the economic value of partnerships with Burke Products, Scilex Holding Company, and Nature's Miracle Holding Inc., as well as the volume of trading activity on its Datavault Platform. The suit also claims the company failed to disclose connections to convicted felon Edward Withrow III and that CEO Nathaniel T. Bradley's prior SEC charges exposed the company to reputational harm. Wolfpack Research published its report on October 31, 2025, characterizing Datavault as a promotional company built around exaggerated AI, quantum computing, and Web3 claims.

The stock dropped from $2.52 to $2.03 in a single session following the report. Multiple firms — including Rosen Law Firm, Kaplan Fox & Kilsheimer LLP, Pomerantz LLP, and Schall, Brown & Schwartz LLP — have filed similar actions on behalf of investors. Datavault has denied the allegations and defended its business strategy and financial disclosures.

Datavault, headquartered in Philadelphia, transformed from WiSa Technologies into an AI and data monetization business. Management has continued announcing new partnerships, acquisitions, and technology initiatives throughout 2026, including expansion of the SanQtum AI infrastructure platform and real-world asset tokenization development. The company has also highlighted growth in tokenization contracts, AI infrastructure investments, and additional patent awards.

The company recently reaffirmed its goal of generating at least $200 million in revenue during 2026. CEO Nathaniel Bradley has maintained that Datavault remains positioned to capitalize on emerging AI and digital asset markets despite increased scrutiny from investors and regulators.

Shares have experienced extraordinary volatility over the past twelve months. Early enthusiasm surrounding AI-related announcements fueled significant price swings as retail investors sought exposure to smaller-cap AI companies. However, the stock has since entered a sustained downtrend marked by repeated periods of heavy selling pressure, with occasional rallies following positive corporate announcements proving short-lived. The stock's high beta and relatively small market capitalization continue to make it especially sensitive to news events, legal developments, and speculative trading activity.

The litigation creates a significant overhang for Datavault as management pursues aggressive growth in AI, blockchain, and digital asset tokenization. The lead plaintiff deadline of October 5, 2026, will determine the structure of the consolidated case, and investors will watch whether court proceedings uncover evidence supporting the allegations. Class action litigation can require years before reaching settlement or trial, and there is no assurance that investors will ultimately recover damages.

This article is for informational purposes only and does not constitute investment advice.