Scilex Holding Company filed a federal securities‑fraud complaint on March 13 2026 against Datavault AI Inc., its CEO Nathaniel Bradley, and several affiliated entities, including The St. James Bank & Trust Company Ltd., Omega & Corinth Group Ltd., and The Bank of New York Mellon Corporation. The complaint accuses the defendants of improperly transferring and selling approximately 96 million Datavault shares that were pledged as collateral in a 2025 stock loan, without authorization.
The 2025 stock loan was entered into in late 2025 and was amended on December 8 2025 to increase the principal to $100 million and the pledged shares to roughly 85.8 million. Scilex alleges that the defendants sold the pledged shares through unauthorized accounts at Bank of New York Mellon, used the proceeds to fund the loan, and deliberately drove down Datavault’s stock price through high‑volume selling while lying to Scilex about the status of the shares.
Datavault has been pivoting from its legacy hardware business to data‑tokenization services and AI‑driven data experiences. The company’s financial statements show a current ratio of 0.68 as of March 9 2026 and an EBIT margin of –1,099.2 %, underscoring liquidity concerns and a high cash burn rate. The lawsuit adds a new layer of risk that could further erode investor confidence and complicate future financing efforts.
This is not the first legal dispute involving Datavault. The company itself filed a federal lawsuit on July 10 2025 against unnamed defendants for securities fraud, defamation, and intentional tort related to alleged “naked” short selling and online misinformation. The presence of prior litigation, combined with the defendants’ history of similar stock‑loan fraud allegations, suggests a pattern of aggressive financial practices that may undermine market trust.
The outcome of the complaint could expose Datavault to compensatory damages exceeding $100 million, punitive damages, and the recovery of the pledged shares or their value. A ruling in favor of Scilex would likely intensify regulatory scrutiny, strain Datavault’s already‑tight liquidity, and make it more difficult to secure new capital. Investors and analysts will be watching the court’s next steps closely, as the case could materially affect the company’s valuation and future growth prospects.
The content on EveryTicker is for informational purposes only and should not be construed as financial or investment advice. We are not financial advisors. Consult with a qualified professional before making any investment decisions. Any actions you take based on information from this site are solely at your own risk.