Alpha Modus Clears Major Federal Court Hurdle as MNTN Patent Challenge Is Denied
Rhea-AI Summary
Alpha Modus Holdings (NASDAQ: AMOD) reported that the U.S. District Court for the Western District of Texas denied MNTN (NYSE: MNTN)'s motion to dismiss Alpha Modus Corp.'s patent case under Federal Rule 12(b)(6) and 35 U.S.C. § 101. The litigation involves U.S. Patent Nos. 10,360,571, 11,042,890 and 12,026,731 and concerns MNTN's Connected TV products such as Matched™, Verified Visits™, Next Gen TV and Performance TV. The Court found it premature to resolve patent eligibility, highlighting the presumption of validity, the clear‑and‑convincing standard for invalidity, and the need for claim construction and factual discovery. This ruling advances the case to the claim‑construction and discovery stages and forms part of Alpha Modus's broader patent enforcement campaign spanning more than 20 actions across retail technology, digital advertising, Connected TV, consumer analytics and AI‑enabled customer engagement. Alpha Modus describes itself as a vertical AI company focused on real‑time in‑store shopper engagement and attribution.
Positive
- Federal court denies MNTN’s dismissal motion, allowing Alpha Modus’s patent case to proceed to claim construction and discovery stages
- Alpha Modus reports a broader patent enforcement campaign spanning more than 20 actions across multiple technology and advertising sectors
Negative
- None.
Market reaction after patent challenge denial: AMOD -16.33%
Following this news, AMOD has declined 16.33%, reflecting a significant negative market reaction. Argus tracked a peak move of +11.6% during the session. Our momentum scanner has triggered 19 alerts so far, indicating notable trading interest and price volatility. The stock is currently trading at $3.90. Trading volume is exceptionally heavy at 8.0x the average, suggesting significant selling pressure.
Data tracked by StockTitan Argus (15 min delayed). Upgrade to Gold for real-time data.
Key Figures
Historical Context
| Date | Event | Sentiment | 24h Move | Catalyst |
|---|---|---|---|---|
| Aug 05 | Services agreement | Positive | -2.9% | Multi-year agreement targeted approximately $8 million in revenue across 2026 and 2027. |
| Aug 03 | Platform launch | Positive | +1.8% | Alpha Cash introduced its first Super Connector ecosystem targeting one million users. |
| Jul 29 | Corporate initiative | Positive | +4.7% | Company broadened corporate development efforts across acquisitions, partnerships and business combinations. |
| Jul 22 | Leadership appointment | Positive | -0.8% | Sasha Asgary became chief strategy officer overseeing corporate growth and capital planning. |
| Jul 14 | Product launch | Positive | +2.7% | Alpha Cash launched its mobile application and prepaid Mastercard through a subsidiary. |
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Historical reactions were mixed: three positive launches or strategy announcements aligned with gains, while contract and leadership news diverged.
Key Terms
patent-ineligible subject matter regulatory
12(b)(6) regulatory
claim construction regulatory
clear-and-convincing-evidence regulatory
AI-generated analysis. How Rhea-AI works. Not financial advice.
Ruling Advances Alpha Modus Patent Litigation Against NYSE-Listed MNTN as Company's Enforcement Campaign Spans More Than 20 Infringement Actions
CORNELIUS, N.C., Aug. 25, 2026 (GLOBE NEWSWIRE) -- Alpha Modus, Corp. (“Alpha Modus”), a subsidiary of Alpha Modus Holdings, Inc. (NASDAQ: AMOD) (“Company”), today announced a significant milestone in its intellectual property enforcement campaign following an order from the United States District Court for the Western District of Texas denying MNTN, Inc.'s motion to dismiss Alpha Modus's patent infringement action.[1]
The Court denied MNTN's motion, which sought dismissal under Federal Rule of Civil Procedure 12(b)(6) and 35 U.S.C. § 101 on the grounds that the asserted Alpha Modus patents were directed to patent-ineligible subject matter.[1]
The litigation involves U.S. Patent Nos. 10,360,571, 11,042,890 and 12,026,731 and allegations concerning MNTN's Connected TV technologies, including MNTN Matched™, Verified Visits™, Next Gen TV and Performance TV products and services.[1][2]
In its 12-page order, the Court determined that resolving patent eligibility at this stage would be premature and concluded that claim construction and factual discovery could materially inform the analysis. In reaching its decision, the Court discussed the presumption of validity afforded to issued patents and the clear-and-convincing-evidence standard applicable to proving invalidity.[1]
The ruling advances Alpha Modus's infringement action against MNTN beyond this threshold challenge and toward claim construction and discovery.
“This ruling represents an important inflection point in our intellectual property enforcement strategy,” said William Alessi, Chief Executive Officer of Alpha Modus Holdings. “We built this portfolio with the conviction that these technologies would become increasingly important as AI, data analytics and personalized engagement transformed the way companies interact with consumers. We intend to protect that innovation. This decision reinforces our resolve to pursue that strategy regardless of the size, resources or market position of the companies on the other side.”
A Formidable Technology Company Across the Table
MNTN (NYSE: MNTN) is a publicly traded technology company that has built a prominent position in Connected TV performance advertising, seeking to make television advertising as measurable, precise and performance-driven as search and social media.[3]
The scale and financial resources of MNTN underscore the significance Alpha Modus places on the ruling. For the second quarter of 2026, MNTN reported revenue of
MNTN completed its initial public offering in May 2025 and began trading on the New York Stock Exchange under the ticker MNTN. Its IPO was priced at
MNTN has also established a high-profile presence at the intersection of technology, advertising and entertainment. Actor, entrepreneur and award-winning marketer Ryan Reynolds serves as MNTN's Chief Creative Officer. [6]
Against that backdrop, Alpha Modus believes the Court's decision represents an important progression in its broader intellectual property enforcement strategy: a sophisticated, well-capitalized public technology company sought dismissal of Alpha Modus's patent claims at the pleading stage, Alpha Modus opposed that effort, and the Court denied the motion.
"The size, resources or market position of a defendant do not change our responsibility to protect intellectual property that we believe is being used without authorization," Alessi said. "We have always preferred commercially rational resolutions when they are available. But our strategy cannot depend upon whether the company across the table is larger than we are. If protecting our intellectual property requires us to litigate against sophisticated, well-capitalized technology companies, we are prepared to do that."
A New Stage in Alpha Modus's Patent Enforcement Campaign
The ruling comes amid a broad Alpha Modus patent enforcement campaign spanning more than 20 infringement actions against companies operating across retail technology, digital advertising, Connected TV, consumer analytics and AI-enabled customer engagement.
The MNTN ruling represents a different kind of milestone for the Company. Rather than announcing another negotiated resolution, Alpha Modus successfully opposed a substantive attempt to dispose of its asserted patent claims through an early patent-eligibility challenge.
The Court noted that MNTN characterized Alpha Modus's technology as the abstract concept of collecting and analyzing consumer behavioral data to deliver targeted advertising. Alpha Modus countered that characterization, arguing that MNTN had oversimplified the patents and ignored the technological improvements embodied by the claims.[1]
The Court ultimately determined that the dispute would benefit from claim construction and factual discovery, stating that where the parties dispute the breadth and framing of the patent claims, claim construction provides an opportunity to clarify those issues and permit a more reasoned patent-eligibility analysis.[1]
"For companies evaluating our portfolio or our willingness to enforce it, this ruling provides another important data point," Alessi continued. "These technologies were developed and protected years before many of today's AI-driven consumer engagement and performance marketing capabilities became commonplace. We intend to protect that work. We are prepared to resolve matters commercially where appropriate, and we are equally prepared to litigate when necessary."
Alpha Modus's asserted patents in the MNTN litigation address technologies involving real-time analysis and utilization of consumer data, including behavioral and interaction information, to deliver personalized marketing, engagement, promotional material and purchase opportunities.[1][2]
About Alpha Modus Holdings, Inc.
Alpha Modus Holdings, Inc. ("Alpha Modus" or the "Company") (NASDAQ: AMOD) is a vertical AI company focused on real-time, in-store shopper engagement and attribution. Its patented "closed-loop" retail AI framework, Sense → Decide → Deliver → Attribute, enables brands and retailers to measure the full impact of digital content, physical interactions, and transaction outcomes. Through subsidiaries like Alpha Modus Financial Services, the Company is actively deploying technologies that merge artificial intelligence, retail media, and financial access across the physical retail landscape.
For more information, visit www.alphamodus.com.
Forward-Looking Statements
This press release includes "forward-looking statements" within the meaning of the "safe harbor" provisions of the United States Private Securities Litigation Reform Act of 1995. Alpha Modus's actual results may differ from their expectations, estimates, and projections, and, consequently, you should not rely on these forward-looking statements as predictions of future events. Words such as "expect," "estimate," "project," "budget," "forecast," "anticipate," "intend," "plan," "may," "will," "could," "should," "believes," "predicts," "potential," "continue," and similar expressions (or the negative versions of such words or expressions) are intended to identify such forward-looking statements, but are not the exclusive means of identifying these statements. These forward-looking statements include, without limitation, Alpha Modus's expectations with respect to future performance, initiatives and implementation.
Alpha Modus Holdings, Inc. ("Alpha Modus") cautions readers not to place undue reliance upon any forward-looking statements, which speak only as of the date made. Alpha Modus does not undertake or accept any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements to reflect any change in its expectations or any change in events, conditions, or circumstances on which any such statement is based.
Investor Relations Contact
Alpha Modus Holdings, Inc.
Email: ir@alphamodus.com
Website: www.alphamodus.com
Sources
[1] U.S. District Court for the Western District of Texas — Order Denying Defendant's Motion to Dismiss, Alpha Modus Corp. v. MNTN, Inc., Case No. 1:25-CV-1466-DAE, Document 31, filed August 21, 2026.
Primary source: the Court's 12-page order.
[2] U.S. District Court for the Western District of Texas — Alpha Modus Corp. v. MNTN, Inc., Complaint for Patent Infringement, Case No. 1:25-cv-01466.
Alpha Modus-hosted copy of the federal complaint.
[3] MNTN Investor Relations — "MNTN Reports Second Quarter 2026 Results," August 4, 2026.
Source for Q2 revenue, growth, adjusted EBITDA, net income, cash, absence of borrowings,
[4] MNTN Investor Relations — "MNTN Announces Pricing of Initial Public Offering," May 21, 2025.
Source for NYSE listing, ticker MNTN, IPO pricing and offering information.
[5] MNTN, Inc. SEC filings — 2025 Form 10-K / IPO disclosures.
Source for IPO closing, shares issued and approximately
[6] MNTN Investor Relations — Ryan Reynolds Executive Profile.
Source identifying Ryan Reynolds as MNTN Chief Creative Officer and co-founder of Maximum Effort.
