Alpha Modus files patent suit against Walgreens over AI tech

CORNELIUS, N.C. - Alpha Modus Holdings, Inc. (NASDAQ:AMOD), a technology company specializing in AI-driven retail solutions with a market capitalization of $14.67 million, has initiated a patent infringement lawsuit against Walgreens Co. The lawsuit, filed in the United States District Court for the Eastern District of Texas, accuses Walgreens of willfully infringing on Alpha Modus’s patented retail technology.

The legal action aims to protect Alpha Modus’s innovations in enhancing consumer retail experiences through AI, which the company claims are being used widely across the industry. Alpha Modus’s CEO, William Alessi, stated that the damages due to the alleged infringement could surpass $500 million and potentially reach billions over the lifespan of the patents. According to InvestingPro data, AMOD stock has experienced significant volatility, with shares down about 76% over the past year despite an impressive 86% surge in the past week.

According to the lawsuit, Walgreens’s use of Cooler Screens digital smart screens in its stores infringes on Alpha Modus’s technology, which offers data-driven insights and interactive advertising to improve shopping experiences. The case against Walgreens adds to a series of legal measures Alpha Modus has pursued against other retailers and tech providers, asserting its commitment to defending its intellectual property.

The lawsuit follows a series of other legal disputes involving Walgreens, including a $200 million lawsuit filed by Cooler Screens over alleged contract breaches. Cooler Screens has ties to Walgreens through its co-founder, Greg Wasson, who is also the former CEO of Walgreens Boots Alliance (NASDAQ:WBA).

This legal move comes after a recent announcement by Alpha Modus on January 30, 2025, addressing market volatility and the company’s SPAC merger, which led to a significant increase in trading volume for AMOD stock. Alessi emphasized the company’s dedication to innovation and shareholder value, suggesting the lawsuit is in line with Alpha Modus’s broader strategic vision.

Alpha Modus Holdings, Inc. remains focused on optimizing consumer engagement and driving returns for retailers and brands with its patented technologies. However, InvestingPro analysis reveals concerning financial health indicators, including a low current ratio of 0.15 and negative earnings per share. Subscribers to InvestingPro can access 8 additional key insights about AMOD’s financial position and growth prospects, along with detailed valuation metrics to make more informed investment decisions. The information in this article is based on a press release statement.

In other recent news, Alpha Modus Holdings has seen a series of significant developments. The company has entered into an amendment to its existing financial arrangements, restructuring its debt payment schedule. This move is a strategic effort by Alpha Modus Holdings to manage its cash flow and financial obligations more effectively.

In addition, Alpha Modus Holdings has received a notification from The Nasdaq Stock Market indicating its market value of publicly held shares has fallen below the required threshold, putting it at risk of delisting. The company has been given 180 days to regain compliance with Nasdaq’s listing rules.

On the personnel front, Alpha Modus has appointed Thomas Gallagher as their Chief Revenue Officer. Gallagher brings a wealth of experience in technology sector sales and leadership to the role.

Furthermore, Alpha Modus Holdings has secured a new patent titled "Methods for Personalized Marketing and Advertising," which may enhance the effectiveness of targeted campaigns. The company has not disclosed specific plans on how it intends to utilize the patent.

Lastly, Alpha Modus has initiated a patent infringement lawsuit against Wakefern Food Corporation and Shelf Nine LLC. The lawsuit alleges that the defendants have infringed on multiple Alpha Modus patents related to retail marketing and advertising technologies. These recent developments indicate a period of significant activity for Alpha Modus Holdings.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.