The litigation, spearheaded by the law firm Robbins LLP, focuses on the period surrounding the company’s transition from WiSA Technologies to Datavault AI. Plaintiffs allege that the company inflated its business prospects by misrepresenting the economic impact of partnerships with firms including Burke, Scilex, and Nature's Miracle. Furthermore, the complaint claims management failed to disclose material risks, specifically potential reputational damage stemming from undisclosed ties to a convicted felon.

The legal challenge gained momentum after a report by Wolfpack Research on October 31, 2025, characterized Datavault as a stock promotion scheme reliant on hollow claims regarding quantum computing and data monetization. The report highlighted a lack of genuine trading volume on the company’s blockchain marketplace, sparking a market reaction that saw the stock price drop 19.44% to close at $2.03 per share. Investors who acquired securities during the specified period have until October 5, 2026, to apply for lead plaintiff status in the ongoing proceedings.