Alpha Modus files patent lawsuit against RetailNext over analytics tech

CORNELIUS, N.C. - Alpha Modus Holdings, Inc. (Nasdaq:AMOD), currently valued at $45.7 million in market capitalization and trading near $1.09, announced Friday that its subsidiary has filed a patent infringement lawsuit against RetailNext Inc. in the U.S. District Court for the Eastern District of Texas. According to InvestingPro data, the stock has experienced significant volatility, falling over 90% in the past year.

The lawsuit alleges that RetailNext, which provides in-store analytics to retailers globally, has implemented Alpha Modus’s patented technologies without authorization. The disputed patents cover systems for tracking shopper behavior, optimizing store layouts, and integrating physical and digital customer insights. While Alpha Modus maintains profitability with positive earnings per share of $0.04, InvestingPro analysis indicates the company operates with moderate debt levels and faces some liquidity challenges.

According to the complaint, RetailNext has infringed on four U.S. patents held by Alpha Modus: 10,853,825; 11,049,120; 12,039,550; and 11,042,890.

RetailNext currently operates in over 100 countries with more than 560 retail brands as clients, including Macy’s, Ulta, Bloomingdale’s, and Estée Lauder. In January 2025, the company received a majority growth investment from Battery Ventures.

The lawsuit claims that RetailNext’s capabilities in areas such as foot traffic analysis, dwell time measurement, conversion metrics, and predictive forecasting rely on Alpha Modus’s patented innovations.

"Alpha Modus remains committed to protecting its intellectual property," the company stated in its press release, adding that while prepared to litigate, it also seeks "constructive resolution when possible."

Alpha Modus Holdings develops AI-driven retail and investment technology solutions through its subsidiary, Alpha Modus Corp. The company’s current P/E ratio stands at 28.9x, with InvestingPro offering 8 additional key insights about the company’s financial health and market position.

In other recent news, Alpha Modus Holdings, Inc. has been granted a new U.S. patent for its retail shopper analytics technologies. The patent focuses on methods for monitoring shopper behavior, which includes tracking products retained during shopping and identifying items at checkout. The company has also filed multiple patent infringement lawsuits, including actions against Mood Media, LLC and Allerin Tech Pvt. Ltd., alleging violations of patents related to shopper analytics and retail engagement technologies. Additionally, Alpha Modus is involved in litigation with Creative Realities, Inc., accusing the latter of infringing on its patented consumer behavior analysis and digital engagement technologies.

In a separate development, Alpha Modus Holdings announced the cancellation of a stock exchange agreement with The Alessi 2023 Irrevocable Trust, connected to CEO William Alessi. The agreement’s termination means that Alpha Modus will not issue the 40,111,940 shares of Class A common stock initially planned. These recent developments highlight Alpha Modus’s ongoing efforts to protect its intellectual property and strategic decisions regarding corporate governance.

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