Naked short selling

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Dickinson Wright Files Lawsuit Against ‘John Doe' ‘Naked' Short-Sellers of Datavault AI Common Stock
GlobeNewswire News Room· 2025-07-11 02:17
Core Viewpoint - Datavault AI, Inc. has filed a lawsuit against unidentified "naked" short sellers, alleging securities fraud and defamation, claiming that these practices have manipulated the stock price despite positive company developments [1][2]. Company Overview - Datavault AI, Inc. focuses on AI-driven data visualization, valuation, and monetization, alongside high-performance computing solutions, operating through two core divisions: data science and acoustic science [2]. - The company utilizes proprietary software that incorporates blockchain, AI, and machine learning for secure data management, real-time valuation, and tokenization [2]. Legal Action Details - The lawsuit, filed in federal court in Chicago, seeks unspecified compensatory and special damages against the defendants for their alleged manipulative practices [1]. - The lead counsel for Datavault AI, Jacob Frenkel, expressed confidence in pursuing civil RICO allegations against the violators once identified [2]. Market Context - "Naked" short selling is illegal but remains a common practice that undermines market stability and investor confidence, as noted by the SEC [2]. - The lawsuit highlights the contrast between Datavault AI's positive business developments and the negative impact of the alleged fraudulent activities on its stock price [2].
Lottery.com Inc. Launches Investigation into Short Selling Activities
Globenewswire· 2025-06-03 15:03
Core Viewpoint - Lottery.com Inc. has initiated an investigation into potential short selling activities affecting its stock, believing it may have been a victim of illegal naked short selling and the dissemination of false information aimed at driving down its stock price [1][2]. Investigation Details - The company has engaged legal counsel from Paul Hastings LLP to conduct the investigation [1]. - Lottery.com has been listed on Nasdaq's Regulation SHO Threshold Security List sixteen times in the past six months, indicating significant failures to deliver its shares [3]. - On February 10, 2025, there were over 1.12 million failures to deliver Lottery.com shares, suggesting potential naked short selling [3]. - The stock has experienced high borrow rates, peaking at over 500%, indicating elevated demand to short the stock [3]. Company Stance - The company is committed to combating the spread of false information and stock manipulation, stating it will take necessary actions to report illegal activities to regulators [4]. - Previous referrals have already been made to regulators including Nasdaq MarketWatch, the SEC, and the Department of Justice [5]. - No action is required from stockholders at this time [5]. Company Overview - Lottery.com Inc. operates a unified ecosystem that integrates gaming, entertainment, and sports, with brands including Sports.com, Tinbu, and WinTogether [6].