Datavault AI Inc. filed a formal complaint on November 10, 2025, against short‑seller firm Wolfpack Research and its founder Dan David. The lawsuit accuses Wolfpack of publishing a report on October 31, 2025 that contained false and defamatory statements about the company and its personnel, alleging abusive, fraudulent, and manipulative practices that the company says are unsubstantiated.
The complaint, attached as Exhibit 99.1 to Datavault’s Form 8‑K, details the specific allegations made in the Wolfpack report. Wolfpack’s October 31 release claimed that Datavault’s data‑tokenization platform was built on insecure technology and that the company was engaged in deceptive marketing. Datavault argues that the report misrepresents its technology, omits critical context, and violates the company’s public filings, thereby harming its reputation and shareholder value.
Financially, Datavault reported $4.44 million in revenue for the twelve months ending September 30, 2025, a 148% increase from the prior year. Gross profit margins stood at 12.44%, while net income for Q2 2025 was a loss of $37.12 million, reflecting a negative margin of –1,545.85%. The company’s high operating costs and investment in intellectual property are cited as primary drivers of the negative net income, even as revenue growth remains robust.
CEO Nathaniel Bradley said the lawsuit is a necessary step to protect the company’s integrity: “The Company, our shareholders, and I have been harmed by Wolfpack’s malicious and self‑serving attack. We will pursue all options at our disposal to hold Wolfpack and Dan David accountable in court.” He added that the company remains focused on generating revenue and driving shareholder value amid the legal dispute.
The lawsuit is expected to influence investor confidence and could affect future earnings guidance. While the legal action signals Datavault’s commitment to defending its reputation, the company’s weak financial metrics and ongoing negative net income may temper investor optimism. Analysts have noted the conflicting sentiment surrounding the short‑seller report, and the market’s reaction will likely hinge on the outcome of the litigation and any subsequent adjustments to the company’s financial outlook.
The legal battle underscores the broader risk that short‑seller allegations pose to emerging technology firms. If the court finds Wolfpack’s claims to be false, Datavault could recover damages and potentially restore investor confidence. Conversely, a protracted legal process may divert management attention and resources, further straining the company’s already tight margins and delaying strategic initiatives such as expanding its AI‑driven data monetization platform.
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