BEN Ends Exclusive Reseller Relationship with AFG, Advances Automotive Initiatives
Brand Engagement Network (NASDAQ: BNAI) has terminated its Exclusive Reseller Agreement with AFG Companies and filed a lawsuit against AFG and its CEO. The lawsuit alleges fraudulent misrepresentation, breach of contract, and concealment of a ransomware attack. The agreement, signed in August 2023, failed when AFG didn't provide access to the promised operational-ready data platform, hindering BEN's automotive market entry.
Despite this setback, BEN is proceeding with its automotive initiatives, including the launch of its Automotive AI Agent, which will support over 13,000 dealerships nationwide. The company is expanding through pilot programs in the Midwest, partnerships in Mexico, and collaborations with Canadian dealership groups. Additionally, BEN continues to develop its AI healthcare solutions, maintaining compliance with HIPAA, GDPR, SOC 2 Type 1, and CCPA regulations.
Brand Engagement Network (NASDAQ: BNAI) ha terminato il suo Accordo di Rivendita Esclusiva con AFG Companies e ha intentato una causa contro AFG e il suo CEO. La causa accusa di falsa rappresentazione, violazione del contratto e occultamento di un attacco ransomware. L'accordo, firmato nell'agosto 2023, è fallito quando AFG non ha fornito l'accesso alla piattaforma dati operativa promessa, ostacolando l'ingresso di BEN nel mercato automobilistico.
Nonostante questo intoppo, BEN procede con le sue iniziative automobilistiche, compreso il lancio del Automotive AI Agent, che supporterà oltre 13.000 concessionarie a livello nazionale. L'azienda si sta espandendo tramite programmi pilota nel Midwest, partnership in Messico e collaborazioni con gruppi di concessionari canadesi. Inoltre, BEN continua a sviluppare le sue soluzioni sanitarie basate sull'IA, mantenendo la conformità con le normative HIPAA, GDPR, SOC 2 Type 1 e CCPA.
Brand Engagement Network (NASDAQ: BNAI) ha terminado su Acuerdo de Revendedor Exclusivo con AFG Companies y ha presentado una demanda contra AFG y su CEO. La demanda alega representación fraudulenta, incumplimiento de contrato y ocultamiento de un ataque de ransomware. El acuerdo, firmado en agosto de 2023, fracasó cuando AFG no proporcionó acceso a la plataforma de datos lista para operar prometida, obstaculizando la entrada de BEN en el mercado automotriz.
A pesar de este contratiempo, BEN está avanzando con sus iniciativas automotrices, incluido el lanzamiento de su Automotive AI Agent, que apoyará a más de 13.000 concesionarios en todo el país. La empresa se está expandiendo a través de programas piloto en el Medio Oeste, asociaciones en México y colaboraciones con grupos de concesionarios canadienses. Además, BEN sigue desarrollando sus soluciones de atención médica basadas en IA, manteniendo el cumplimiento con las regulaciones HIPAA, GDPR, SOC 2 Tipo 1 y CCPA.
브랜드 참여 네트워크 (NASDAQ: BNAI)는 AFG Companies와의 독점 리셀러 계약을 종료하고 AFG와 그 CEO를 상대로 소송을 제기했습니다. 소송은 사기성 허위 진술, 계약 위반 및 랜섬웨어 공격 은닉을 주장합니다. 2023년 8월에 서명된 이 계약은 AFG가 약속된 운영 준비 데이터 플랫폼에 대한 접근을 제공하지 않아 BEN의 자동차 시장 진입을 방해하면서 실패했습니다.
이러한 난관에도 불구하고 BEN은 13,000개 이상의 딜러를 지원할 자동차 AI 에이전트의 출시를 포함하여 자동차 이니셔티브를 추진하고 있습니다. 이 회사는 중서부에서 파일럿 프로그램을 통해, 멕시코에서 파트너십을 통해, 캐나다 딜러 그룹과의 협력을 통해 확장하고 있습니다. 또한 BEN은 HIPAA, GDPR, SOC 2 Type 1 및 CCPA 규정을 준수하며 AI 의료 솔루션 개발을 지속하고 있습니다.
Brand Engagement Network (NASDAQ: BNAI) a résilié son Contrat de Revendeur Exclusif avec AFG Companies et a intenté une action en justice contre AFG et son PDG. La plainte allègue des déclarations frauduleuses, une violation de contrat et la dissimulation d'une attaque par ransomware. Le contrat, signé en août 2023, a échoué lorsque AFG n'a pas fourni l'accès à la plateforme de données opérationnelle prometteuse, entravant l'entrée de BEN sur le marché automobile.
Malgré cet incident, BEN avance avec ses initiatives automobiles, y compris le lancement de son Agent IA Automobiles, qui soutiendra plus de 13 000 concessionnaires à l'échelle nationale. L'entreprise s'expand par le biais de programmes pilotes dans le Midwest, de partenariats au Mexique et de collaborations avec des groupes de concessionnaires canadiens. De plus, BEN continue de développer ses solutions de santé basées sur l'IA, tout en respectant les réglementations HIPAA, GDPR, SOC 2 Type 1 et CCPA.
Brand Engagement Network (NASDAQ: BNAI) hat seine Exklusivvertriebsvereinbarung mit AFG Companies beendet und eine Klage gegen AFG sowie dessen CEO eingereicht. Die Klage wirft betrügerische Falschdarstellung, Vertragsbruch und Verschleierung eines Ransomware-Angriffs vor. Die im August 2023 unterzeichnete Vereinbarung scheiterte, als AFG den Zugang zur versprochenen betriebsbereiten Datenplattform verwehrte, was den Markteintritt von BEN im Automobilsektor behinderte.
Trotz dieses Rückschlags geht BEN mit seinen Automobilinitiativen voran, einschließlich der Einführung seines Automotive AI Agent, der über 13.000 Autohäuser im ganzen Land unterstützen wird. Das Unternehmen expandiert durch Pilotprogramme im Mittleren Westen, Partnerschaften in Mexiko und Kooperationen mit kanadischen Autohausgruppen. Darüber hinaus entwickelt BEN weiterhin seine KI-gestützten Gesundheitslösungen und hält die Compliance mit den Vorschriften HIPAA, GDPR, SOC 2 Typ 1 und CCPA ein.
- Launching Automotive AI Agent supporting 13,000+ dealerships nationwide
- Geographic expansion through pilot programs in Midwest, Mexico, and Canada
- Development of HIPAA-compliant healthcare AI solutions
- Legal dispute with AFG Companies affecting automotive market entry strategy
- Significant delays in key automotive initiatives due to failed partnership
- Business disruption from termination of exclusive reseller agreement
Insights
The lawsuit against AFG and its CEO presents substantial legal and financial implications. Filing in the Northern District of Texas strategically positions BEN in a business-friendly jurisdiction. The triple-pronged complaint - fraudulent misrepresentation, breach of contract and concealment of a ransomware attack - creates multiple avenues for potential damages recovery. The concealment of the cybersecurity breach prior to contract execution could trigger significant punitive damages, as it demonstrates willful misconduct. The timing of contract termination, coupled with immediate legal action, suggests BEN has gathered compelling evidence to support their claims.
A critical analysis of BEN's statement reveals careful legal positioning - they've emphasized the ransomware attack occurred before any system integration, preemptively addressing potential shareholder concerns about data security. However, the litigation process could extend 18-24 months, potentially diverting management attention and incurring significant legal expenses.
The termination of the AFG agreement, while disruptive in the short term, actually strengthens BEN's market position. The planned Automotive AI Agent demonstrates strategic pivot capabilities, with integration support for 13,000 dealerships indicating robust infrastructure scalability. The multi-regional expansion strategy across the Midwest, Mexico and Canada reveals a well-structured market penetration approach.
A important technical advantage emerges from BEN's compliance portfolio - HIPAA, GDPR, SOC 2 Type 1 and CCPA certifications showcase enterprise-grade security architecture. This positions them favorably against competitors, particularly in handling sensitive automotive customer data. The ransomware incident at AFG inadvertently validates BEN's security-first approach and could accelerate adoption among security-conscious dealerships.
For a company with a market cap of
The termination of the AFG agreement, while potentially disruptive to short-term revenue targets, eliminates a problematic partnership that could have posed larger long-term risks. The company's dual focus on automotive and healthcare sectors provides vertical diversification, though investors should monitor execution capabilities across these distinct markets. The emphasis on regulatory compliance and data security positions BEN favorably for enterprise contracts, particularly in the current heightened cybersecurity environment.
JACKSON, Wyo., Jan. 17, 2025 (GLOBE NEWSWIRE) -- Brand Engagement Network Inc. (“BEN”) (NASDAQ: BNAI), an innovator in AI-powered customer engagement solutions, today announced the termination of its Exclusive Reseller Agreement (the “Agreement”) with AFG Companies, Inc. (“AFG”) and the filing of a lawsuit in the Northern District of Texas, Dallas Division, against AFG and its CEO, Ralph Wright Brewer III. The lawsuit alleges fraudulent misrepresentation, breach of contract, and the concealment of a ransomware attack on their network shortly before the agreement was executed.
The Agreement, signed in August 2023, was intended to expedite BEN’s entry into the automotive market. However, AFG’s failure to provide access to the agreed-upon operational-ready data platform hindered BEN’s ability to deliver its AI solutions to dealerships. BEN believes these issues caused significant delays in key automotive initiatives and irreparably damaged trust in the partnership.
“We believe AFG’s actions significantly disrupted our efforts to modernize dealership operations,” said Paul Chang, Chief Executive Officer of BEN. “Terminating the Agreement was essential to protect our strategy and enable us to focus on delivering impactful AI solutions to the automotive industry.”
“The ransomware attack occurred before we would have integrated any of our systems with AFG, and at no point were BEN’s systems, data, or customers ever impacted,” Chang added.
BEN Prepares for 2025 Automotive AI Agent Rollout
BEN is finalizing preparations to launch its Automotive AI Agent, a solution that integrates with major automotive data and service platform providers and supports over 13,000 dealerships nationwide. This initiative highlights BEN’s strong commitment to the automotive sector. The AI Agent streamlines dealership operations by improving lead conversion, automating scheduling, enhancing service efficiency, and providing advanced analytics. Additionally, BEN plans to expand its efforts through pilot programs in the Midwest, stronger reseller partnerships in Mexico, and collaborations with Canadian dealership groups. These initiatives showcase BEN’s dedication to delivering innovative, safe, scalable, and data-driven solutions to meet the evolving needs of automotive dealerships.
AI Healthcare Solutions for Patient Engagement Continues to Expand
BEN continues to expand its AI healthcare solutions to transform patient engagement and streamline communications. These solutions adhere to key regulations, including HIPAA, GDPR, SOC 2 Type 1, and CCPA, ensuring the protection of PII and PHI. By prioritizing robust data security and reducing administrative burdens, BEN empowers healthcare providers to focus on delivering high-quality care.
BEN Prioritizes Trust and Automotive Partnerships
“We understand the importance of data security and trust in the automotive industry, in particular. The termination of this Agreement underscores our zero tolerance for actions that undermine trust,” said Walid Khiari, Chief Financial Officer and Chief Operating Officer of BEN. “This decisive step strengthens our ability to prioritize initiatives that benefit our automotive partners.”
About BEN
Brand Engagement Network Inc. (BEN) is a global leader in AI-powered customer engagement solutions. Headquartered in Jackson, Wyoming, with offices in Seoul, South Korea, BEN delivers advanced technology to enhance data utilization, improve interactions, and drive operational efficiency. BEN provides a secure, scalable AI platform that empowers businesses to build trust and achieve impactful results. Serving industries such as automotive, healthcare, and customer service, BEN uses AI-powered digital agents and advanced tools to streamline operations and enhance experiences. Its validated data is delivered through SaaS, Private Cloud, and On-Premises technology, ensuring data privacy and security while enabling efficient operations.
For more information, please visit www.beninc.ai.
Forward-Looking Statements
Certain statements in this communication are "forward-looking statements" within the meaning of federal securities laws. They are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements reflect, among other things, BEN’s current expectations, assumptions, plans, strategies, and anticipated results, including the ultimate outcome of BEN’s lawsuit against AFG (the “AFG Lawsuit”) and the termination of the Agreement. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks, and changes in circumstances that may differ materially from those contemplated by the forward-looking statements, which are neither statements of historical fact nor guarantees or assurances of future performance.
There are a number of risks, uncertainties and conditions that may cause BEN’s actual results to differ materially from those expressed or implied by these forward-looking statements, including but not limited to: (i) uncertainties as to the timing of the AFG Lawsuit; (ii) the risk that the AFG Lawsuit may not be successful; (iii) the failure to replace the Agreement with alternative arrangements on acceptable terms or at all; (iv) the effect of the announcement or pendency of the AFG Lawsuit and the termination of the Agreement on BEN’s ability to retain and hire key personnel and raise additional sources of capital, its ability to maintain relationships with its customers, suppliers and others with whom it does business, or its operating results and business generally; (v) risks related to diverting management's attention from BEN’s business as a result of the AFG Lawsuit; and (vi) (A) the risk factors described in Part I, Item 1A of Risk Factors in BEN’s Annual Report on Form 10-K for the year ended December 31, 2023 and (B) the other risk factors identified from time to time in the BEN’s other filings with the Securities and Exchange Commission (the "SEC"). Filings with the SEC are available on the SEC's website at http://www.sec.gov.
Many of these circumstances are beyond BEN’s ability to control or predict. These forward-looking statements necessarily involve assumptions on BEN’s part. These forward-looking statements may include words such as "believe," "expect," "anticipate," "estimate," "intend," "plan," "project," "should," "may," "will," "might," "could," "would," or similar expressions. All forward-looking statements attributable to the Company or persons acting on BEN’s behalf are expressly qualified in their entirety by the cautionary statements that appear throughout this communication. Furthermore, undue reliance should not be placed on forward-looking statements, which are based on the information currently available to the Company and speak only as of the date they are made. BEN disclaims any intention or obligation to update or revise publicly any forward-looking statements.
Media Contact
Amy Rouyer
P: 503-367-7596
E: amy@beninc.ai
Investor Relations
Susan Xu
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E: sxu@allianceadvisors.com
FAQ
What caused BNAI to terminate its agreement with AFG Companies in January 2025?
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What regulatory compliance standards does BNAI's healthcare AI solution meet?
What are BNAI's expansion plans for its automotive business in 2025?
Was BNAI's system affected by AFG's ransomware attack?
