Pomerantz LLP is investigating claims on behalf of investors of Datavault AI Inc. concerning potential securities fraud and other unlawful business practices by the company and its officers. The investigation follows a short report published by Wolfpack Research on October 31, 2025, which alleged that Datavault was a "stock promotion" relying on misleading press releases and "empty claims" about artificial intelligence, quantum computing, Web 3.0, and data monetization.

The report further criticized Datavault’s press releases for being filled with promotional buzzwords that did not reflect actual business operations. Wolfpack Research also questioned the activity on Datavault’s blockchain marketplace, alleging that the platform had virtually no trading activity. Additionally, the report raised concerns about Datavault’s leadership and affiliations, including alleged connections with a convicted felon.

Following the publication of the report, Datavault’s stock price fell $0.49 per share, or 19.44%, to close at $2.03 per share on October 31, 2025. This significant decline in share price represents the immediate financial impact of the allegations on the company's market valuation.

Investigation Details

Pomerantz LLP, a firm recognized for its work in corporate and securities class litigation, is examining whether Datavault and certain of its officers and/or directors engaged in securities fraud. Investors of Datavault are advised to contact Danielle Peyton at newaction@pomlaw.com or 646-581-9980, ext. 7980, to discuss their rights and potential remedies.

The firm has offices in New York, Chicago, Los Angeles, London, Paris, and Tel Aviv, and has recovered numerous multimillion-dollar damages awards on behalf of class members. The outcome of this investigation remains to be seen as the firm gathers further information regarding the allegations against Datavault AI Inc.

Datavault AI Inc. (NASDAQ: DVLT) announced that the United States Patent and Trademark Office (USPTO) has issued a Notice of Allowance for a patent targeting naked and excessive short selling through tokenized dividend distribution. The allowance, dated July 1, 2026, covers all 24 pending claims of U.S. Patent Application No. 19/445,241, filed on January 9, 2026. The technology uses blockchain to verify shareholder ownership and expose undelivered or synthetic share positions, addressing persistent integrity questions in U.S. equity markets.

The patent covers computer-implemented methods and systems that generate digital dividend tokens on a distributed ledger. A core data-integrity safeguard ensures no dividend token is issued for an undelivered share. The system performs settlement reconciliation by comparing issued tokens against reported share positions held by market intermediaries to identify discrepancies. Additional claims include CUSIP reclassification, automatic recall of lent shares, smart-contract settlement execution, and short-interest analytics identifying brokers or custodians responsible for delivery failures.

Patent Scope and Mechanisms

The allowed claims focus on modernizing dividend administration through blockchain infrastructure. Key components include:

• Token Generation: Digital dividend tokens are created corresponding to shares entitled to a declared dividend and assigned to verified shareholders of record.
• Verification: Shareholder identity is confirmed by cross-referencing transfer-agent data, custodian records, and distributed-ledger entries.
• Reconciliation: Issued tokens are reconciled against reported positions to surface undelivered, synthetic, or uncovered short positions.
• Settlement: Uncovered positions are settled via delivery of shares, tokens, or equivalent monetary value, potentially using smart contracts.
• Audit Records: Immutable records of settled and undelivered positions are maintained, with real-time reporting interfaces.

Strategic Implications

Datavault AI believes the patent expands its intellectual property portfolio in digital capital markets infrastructure. The company sees potential licensing opportunities across exchanges, transfer agents, broker-dealers, custodians, issuers, and digital asset platforms. This development complements previously announced digital asset initiatives, including the Dream Bowl I meme coin, which began trading on the Biconomy exchange in June 2026.

"Receiving this Notice of Allowance represents another important milestone in expanding Datavault AI’s intellectual property portfolio into digital capital markets infrastructure," said Nathaniel T. Bradley, CEO of Datavault AI. "We believe blockchain-enabled dividend distribution and shareholder verification technologies have the potential to improve transparency, strengthen market integrity, and create new licensing opportunities."

Patent Details