Alpha Modus sues Indian tech firm for patent infringement

CORNELIUS, N.C. - Alpha Modus Holdings, Inc. (NASDAQ:AMOD), a $47 million market cap technology company whose stock has surged over 8% in the past week, has filed a patent infringement lawsuit against India-based Allerin Tech Pvt. Ltd. in the United States District Court for the Eastern District of Texas, according to a press release statement issued Monday.

The lawsuit, filed on September 12, alleges that Allerin infringed on ten Alpha Modus patents related to consumer behavior analysis, real-time inventory management, personalized in-store marketing, and AI-driven retail engagement technologies.

The patents in question include U.S. Patent Nos. 10,360,571; 10,853,825; 11,049,120; 10,977,672; 12,039,550; 11,042,890; 11,301,880; 12,026,731; 12,354,121; and pending claims under Application No. 18/905,975, which will issue on September 23.

Alpha Modus claims that Allerin’s AllView AI platform, which offers machine vision, object detection, and retail applications, directly practices Alpha Modus’s patented methods.

"We believe that most companies practicing AI in retail are going to struggle—or are already struggling—not to step on at least one of our patents," said William Alessi, CEO of Alpha Modus.

The lawsuit seeks damages, injunctive relief, and recognition of the validity and enforceability of Alpha Modus’s portfolio.

This legal action follows previous enforcement filings by Alpha Modus against several U.S. retailers and advertising networks including Kroger, Creative Realities, A2Z Cust2Mate Solutions, Cooler Screens, Brookshire Grocery and MNTN. According to InvestingPro data, the company operates with moderate debt levels but faces challenges with weak gross profit margins and short-term liquidity.

Alpha Modus Holdings Inc. is a publicly traded AI-driven retail and fintech solutions provider that focuses on consumer engagement technologies at the point of sale. While the company trades at a relatively high P/E ratio of 29x, InvestingPro analysis reveals 8 additional key insights about the company’s financial health and market position. Unlock these insights and make more informed investment decisions with an InvestingPro subscription.

In other recent news, Alpha Modus Holdings Inc. announced the termination of a stock exchange agreement with The Alessi 2023 Irrevocable Trust, a family trust of CEO William Alessi. This agreement, initially set in August, involved exchanging Series C Preferred Stock for Class A common stock, but was canceled due to a decline in the stock’s closing price. In legal developments, Alpha Modus Holdings has filed multiple patent infringement lawsuits. One lawsuit targets Creative Realities, Inc., alleging infringement on technologies related to consumer behavior and retail personalization. Another lawsuit has been filed against A2Z Cust2Mate Solutions Corp., accusing it of infringing on patents covering retail technology functionalities. Additionally, Alpha Modus has taken legal action against Cooler Screens, Inc. for alleged infringement on patented consumer engagement technologies. On the partnership front, Alpha Modus has entered a reseller and technology integration agreement with VSBLTY Groupe Technologies Corp. This collaboration aims to expand Alpha Modus’s AI-powered retail technology offerings in the U.S. while establishing revenue-sharing models.

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