Alpha Modus Files Patent Infringement Lawsuit Against Wakefern Food Corporation and Shelf Nine LLC

Rhea-AI Summary

Alpha Modus Holdings (Nasdaq: AMOD) announced that its subsidiary, Alpha Modus Corp., has filed a patent infringement lawsuit against Wakefern Food and Shelf Nine The lawsuit, filed on December 17, 2024, in the U.S. District Court for the Eastern District of Texas, alleges infringement of multiple patent portfolios related to retail marketing and advertising data-driven technologies.

The lawsuit targets Wakefern, which operates 365 supermarkets under various brands across nine states, and Shelf Nine , a subsidiary of VSBLTY Groupe Technologies Corp. The disputed patents involve technology for analyzing consumer behavior and product interaction in real-time at the point of purchase. The company has retained Christopher E. Hanba of Dickinson Wright PLLC to handle the case.

Positive

• Company actively defending its intellectual property rights in retail AI technology
• Potential for monetary compensation if lawsuit is successful
• Demonstrates value of company's patent portfolio in retail technology sector

Negative

• Legal proceedings could be costly and time-consuming
• Uncertain outcome of patent litigation
• Risk of counter-claims or challenges to patent validity

Insights

Legal Expert

The patent infringement lawsuit against Wakefern Food and Shelf Nine marks a significant legal development. The case, filed in the Eastern District of Texas (a venue known for patent litigation), involves multiple patent portfolios related to retail marketing and consumer behavior analysis technologies. The engagement of Christopher E. Hanba from Dickinson Wright PLLC, following previous actions against Kroger and Brookshire, indicates a systematic approach to protecting Alpha Modus' intellectual property. The scope of the alleged infringement spans across 365 supermarkets under various brands in nine states, potentially leading to substantial damages if Alpha Modus prevails. The Eastern District of Texas historically favors patent holders, with higher success rates and larger damages awards. The lawsuit's outcome could significantly impact retail technology implementation across the grocery sector, potentially forcing licensing agreements or technology modifications. The comprehensive nature of the patent portfolios covering data-driven retail technologies suggests a strong foundation for the case.

Market Research Analyst

This lawsuit represents a strategic move by Alpha Modus to monetize its intellectual property portfolio in the retail analytics space. With a relatively small market cap of $34.5M, successful litigation could significantly boost the company's value through potential settlements, licensing agreements, or court-awarded damages. Wakefern's extensive network of 365 supermarkets presents a substantial revenue opportunity. The retail media networks market is projected to grow rapidly, making this IP protection important for Alpha Modus' future market position. The timing aligns with increasing adoption of in-store digital advertising and consumer analytics technologies. The lawsuit's focus on point-of-decision technology is particularly relevant as retailers increasingly compete for consumer attention at the shelf level. For investors, this represents a potential catalyst for value creation, though litigation outcomes are inherently uncertain and could take years to materialize.

CORNELIUS, N.C., Dec. 19, 2024 (GLOBE NEWSWIRE) -- Alpha Modus Holdings, Inc. (Nasdaq: AMOD) ("Alpha Modus" or the “Company”), a technology company with a core focus on artificial intelligence in retail, today announced its subsidiary, Alpha Modus, Corp., has filed a patent infringement lawsuit against Wakefern Food Corporation, which has 48 member companies that own and operate 365 supermarkets, under the ShopRite, Price Rite Marketplace, The Fresh Grocer, Dearborn Market, Gourmet Garage, and Fairway Market brands in New Jersey, New York, Connecticut, Pennsylvania, Maryland, Delaware, Massachusetts, New Hampshire and Rhode Island, and Shelf Nine LLC (subsidiary of VSBLTY Groupe Technologies Corp), which purports to be a leader in retail media networks, providing brands and retailers specifically targeted digital media advertising and other customer communications content delivered at the point of purchase. The lawsuit was filed alleging infringement of several Alpha Modus patents pertaining to the Company’s ‘571 patent portfolio, ‘825 patent portfolio, ‘672 patent portfolio, ‘890 patent portfolio and ‘880 patent portfolio, which encompass retail marketing and advertising data-driven technologies to enhance consumers’ in-store experience at the point of decision. The Company’s portfolio of patents includes the capability to analyze consumer behavior and product interaction in real-time, allowing businesses to dynamically adjust their marketing strategies to meet the immediate needs of consumers at pivotal purchasing decision moments. The complaint was filed on December 17, 2024, in the United States District Court for the Eastern District of Texas.

In accordance with Alpha Modus’ prior patent infringement actions against The Kroger Co and Brookshire Grocery Company, the Company has continued its engagement with Christopher E. Hanba of Dickinson Wright PLLC, a leading global law firm, for his legal expertise, technical industry knowledge, and deep experience with enforcing intellectual property rights.

About Alpha Modus

Alpha Modus engages in creating, developing and licensing data-driven technologies to enhance consumers' in-store digital experience at the point of decision. The company was founded in 2014 and is headquartered in Cornelius, North Carolina. For additional information, please visit alphamodus.com.

Forward-Looking Statements

This press release includes "forward-looking statements" within the meaning of the "safe harbor" provisions of the United States Private Securities Litigation Reform Act of 1995. Alpha Modus' actual results may differ from their expectations, estimates, and projections and, consequently, you should not rely on these forward-looking statements as predictions of future events. Words such as "expect," "estimate," "project," "budget," "forecast," "anticipate," "intend," "plan," "may," "will," "could," "should," "believes," "predicts," "potential," "continue," and similar expressions (or the negative versions of such words or expressions) are intended to identify such forward-looking statements, but are not the exclusive means of identifying these statements. These forward-looking statements include, without limitation, Alpha Modus' expectations with respect to future performance.

Alpha Modus cautions readers not to place undue reliance upon any forward-looking statements, which speak only as of the date made. Alpha Modus does not undertake or accept any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements to reflect any change in its expectations or any change in events, conditions, or circumstances on which any such statement is based.

Contacts:

Alpha Modus Holdings, Inc.

Investor Relations

ir@alphamodus.com

FAQ

What patents is Alpha Modus (AMOD) claiming were infringed in its December 2024 lawsuit?

Alpha Modus is claiming infringement of its '571, '825, '672, '890, and '880 patent portfolios, which cover retail marketing and advertising data-driven technologies for enhancing consumers' in-store experience at the point of decision.

Who are the defendants in Alpha Modus's (AMOD) latest patent infringement lawsuit?

The defendants are Wakefern Food , which operates 365 supermarkets under various brands, and Shelf Nine , a subsidiary of VSBLTY Groupe Technologies Corp.

Where was Alpha Modus's (AMOD) patent infringement lawsuit filed in December 2024?

The lawsuit was filed in the United States District Court for the Eastern District of Texas on December 17, 2024.

What technology is at the center of Alpha Modus's (AMOD) patent infringement claims?

The technology involves analyzing consumer behavior and product interaction in real-time, allowing businesses to dynamically adjust marketing strategies at point of purchase decisions.