Rezolve AI PLC (NASDAQ:RZLV) shares are trading higher on Wednesday after the company issued optimistic guidance, shrugging off a short-seller attack from Grizzly Research.
What Happened: Short-selling firm Grizzly Research announced that it’s shorting Rezolve AI stock as the short seller believes the company is a “sham.”
“After weeks of investigation, we conclude that the business is nothing more than smoke and mirrors and that today’s news is simply another promotional piece,” the short seller said in a social media post.
Benzinga has reached out to Rezolve AI for comment.
Rezolve AI shares initially surged on Wednesday after the company reported financial results for the first half of the year and issued optimistic guidance for the second half of 2025 and for full-year 2026.
Grizzly Research noted that the company highlighted revenue growth without disclosing where it came from. The short seller believes a majority of revenue was due to the company’s GroupBy acquisition. The firm further noted that the company failed to highlight its $38.7 million in operating costs for the first half of the year.
Grizzly Research also pointed to negative employee reviews on Glassdoor as evidence supporting its short thesis, drawing parallels between Rezolve AI and the collapsed Powa Technologies, which was founded by Rezolve’s CEO.
“Obviously, we aren’t the only people who have seen the similarities between Powa Technologies and $RZLV, even former employees have seen the writing on the wall,” Grizzly said.
Multiple former employees have reportedly raised complaints regarding the company. One software developer claimed the company “never pays on time” and that employees were told to have “faith” they would eventually receive payments. A current product manager also alleged the company acquires businesses because “they don’t have a product that works” and criticized CEO Dan Wagner’s leadership, pointing to his history with Powa Technologies.
Additional complaints on Glassdoor included alleged failures to pay taxes and National Insurance, and claims the product is just “a glorified QR code reader” rather than true machine learning.
“Investors in $RZLV should be warned: it appears that the company is now engaging in the exact same grift and lies as it has in the past,” the short seller said.
RZLV Price Action: Rezolve AI shares traded as high as $6.23 on Wednesday before pulling back. The stock was up 6.35% at $5.30 at the time of publication on Wednesday, according to Benzinga Pro.
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