Datavault Stock Jumps 38% as Lawsuit Alleges Share Suppression

Edgen Stock·Mar 18 2026, 19:14

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Key Takeaways

Datavault (DVLT) stock surged 38% in one week, marking its best performance since November, as intense retail trading coincided with a major lawsuit. Scilex Holding Company alleges that 96 million DVLT shares were illegally sold, creating artificial price suppression that the recent rally may be correcting ahead of the company's earnings report.

Datavault's 38% weekly gain was driven by heavy retail volume, with the stock climbing over 23% in a single session.
A lawsuit filed on March 13 alleges that 96 million DVLT shares were improperly sold onto the market, with Scilex Holding seeking over $100 million in damages.
The stock's rally comes just before its Q4 2025 earnings call on March 19, creating a high-stakes test for the new retail-driven momentum.

Stock Surges 38% As Retail Traders Digest Fraud Allegations

Datavault AI (DVLT) shares experienced a 38% price increase during the week of March 18, 2026, marking the stock's strongest weekly performance since the previous November. The move was powered by a surge in retail investor interest, which pushed trading volume to 99 million shares in a single day's session. This activity sent the stock to a high of $0.99, closing at $0.9561 for a daily gain of over 23%. The buying frenzy precedes the company's upcoming earnings announcement, suggesting traders are positioning for a significant volatility event.

Lawsuit Alleges 96M Shares Illegally Sold, Depressing Price

The rally's backdrop is a significant legal battle. On March 13, Scilex Holding Company filed a federal lawsuit alleging a scheme involving the unauthorized sale of approximately 96 million DVLT shares. According to the complaint, these shares were pledged as collateral for a loan and were not authorized for sale. Scilex alleges that the defendants, including The St. James Bank & Trust Company and related parties, systematically sold these shares into the public market, with The Bank of New York Mellon also named for its alleged role in administering the accounts. Scilex is seeking compensatory damages exceeding $100 million.

The alleged unauthorized selling of such a large volume of stock likely created substantial and artificial selling pressure on DVLT's market price. The timing of the current rally suggests investors are reacting to the removal of this overhang, speculating that the stock's true value was previously obscured by the improper share sales.

Earnings on March 19 to Test Retail-Driven Momentum

Datavault is scheduled to report its fourth quarter and full-year 2025 financial results before the market opens on Thursday, March 19, 2026. A conference call with CEO Nathaniel Bradley and CFO Brett Moyer will follow at 8:30 a.m. UTC-4. This earnings report serves as a critical test for the stock's recent momentum. A strong performance could provide fundamental validation for the retail-driven rally, while a miss could trigger a sharp reversal as traders who bought on speculation rush to take profits.