Datavault AI Inc. (NASDAQ:DVLT) founder Nathaniel Bradley has filed a lawsuit in the Delaware Court of Chancery challenging his removal as chief executive officer and seeking reinstatement, alleging that the company’s board failed to follow required corporate procedures.
The complaint names Board Chairman and Chief Financial Officer Brett Moyer in allegations concerning Bradley’s suspension, board governance and the handling of a proposed financing transaction.
Bradley is asking the court to declare his removal invalid.
According to the complaint, Moyer unilaterally suspended Bradley on October 30 without obtaining approval through a vote of the full board of directors.
Bradley alleges that the action violated Datavault AI’s bylaws, which he maintains reserve the authority to remove corporate officers exclusively for the full board.
The suspension reportedly occurred two days after Bradley requested that directors consider removing Moyer from his position as chief financial officer.
The lawsuit also challenges a subsequent Sunday board meeting convened by Moyer, alleging that the meeting did not comply with applicable procedural requirements.
These claims remain allegations presented in the lawsuit and have not been established by a court.
The lawsuit additionally alleges that Moyer withheld information about a proposed financing transaction valued between $90 million and $100 million from Datavault AI’s independent directors.
According to Bradley’s complaint, he introduced the financing proposal to the company one day before losing access to his position.
The filing alleges that the offer was not properly disclosed to independent board members.
The supplied information does not establish whether the proposed financing would have been completed or what terms would have applied.
In a statement addressing the dispute, Bradley said he “strongly disputes the legal validity of the Board’s decision” to remove him.
He also argued that the decision “jeopardizes the Company’s ability to realize its full potential.”
Bradley’s lead attorney, Jacob Frenkel, a former Securities and Exchange Commission enforcement attorney and federal prosecutor, said his client “will continue to fight for the shareholders and against those who put their own interests ahead of the company’s stakeholders.”
The statements reflect Bradley’s and his legal counsel’s positions in the dispute.
Datavault AI, formerly known as WiSA Technologies, acquired the assets of Data Vault Holdings in December 2024.
The company trades on the Nasdaq stock exchange under the symbol DVLT.
The lawsuit seeks a judicial determination regarding the validity of Bradley’s removal and the procedures followed by the company’s leadership.
The supplied announcement does not include a response from Moyer or Datavault AI’s board to the allegations.
The outcome of the proceedings will depend on the court’s assessment of the company’s governing documents, the actions taken by directors and the applicable legal requirements.
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