CORNELIUS, N.C. - Alpha Modus Holdings, Inc. (NASDAQ:AMOD), specializing in artificial intelligence for retail, has initiated a patent infringement lawsuit against Wakefern Food Corporation and Shelf Nine LLC. The stock, which has shown significant price volatility according to InvestingPro data, has experienced a notable decline over the past week. The legal action, filed on December 17, 2024, in the United States District Court for the Eastern District of Texas, alleges that the defendants have infringed on multiple Alpha Modus patents related to retail marketing and advertising technologies.
The patents in question are part of Alpha Modus's '571, '825, '672, '890, and '880 portfolios. These patents cover technologies aiming to improve the in-store experience for consumers by analyzing consumer behavior and product interaction in real-time. This capability allows for the dynamic adjustment of marketing strategies at crucial buying decision points.
Alpha Modus, founded in 2014 and based in Cornelius, North Carolina, focuses on developing and licensing data-driven technologies that enhance digital experiences for consumers at the point of decision. InvestingPro analysis reveals the company faces challenges with weak gross profit margins and has not been profitable over the last twelve months. The company has previously engaged in patent infringement actions against other retailers, including The Kroger Co (NYSE:KR) and Brookshire Grocery Company.
For this lawsuit, Alpha Modus continues its partnership with Christopher E. Hanba of Dickinson Wright PLLC, a global law firm with extensive experience in intellectual property rights enforcement.
The suit targets Wakefern Food Corporation, which operates multiple supermarket brands across several states, and Shelf Nine LLC, a subsidiary of VSBLTY Groupe Technologies Corp, known for its retail media networks that deliver digital advertising and customer communications at the point of purchase.
This news is based on a press release statement, and the information provided should not be seen as an endorsement of Alpha Modus's claims. Despite current challenges, management has been actively buying back shares, according to InvestingPro, which offers 6 additional key insights about the company's performance and outlook. It is a factual report of the company's legal actions regarding its intellectual property.
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