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Alpha Modus Clears Major Federal Court Hurdle as MNTN Patent Challenge Is Denied

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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.

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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.

News Market Reaction – MNTN

+2.40%
18 alerts
+2.40% Session close to close
-2.1% Trough in 1 hr 12 min
$949.15M Market Cap
0.7x Rel. Volume

In the Aug 25 session, MNTN gained 2.40%, reflecting a moderate positive market reaction. Argus tracked a trough of -2.1% from its starting point during tracking. Our momentum scanner triggered 18 alerts that day, indicating notable trading interest and price volatility.

Data tracked by StockTitan Argus on the day of publication.

Market Context

MNTN's 5.37% 24-hour reaction to its conference announcement offers a historical comparison for inte...
Analysis

MNTN's 5.37% 24-hour reaction to its conference announcement offers a historical comparison for interpreting this legal milestone. The platform record also shows Net Selling of 335,555 shares to monitor alongside the unresolved litigation process.

Key Figures

Asserted patents: 3 U.S. patents Enforcement actions: More than 20 actions Revenue: $82.5 million +5 more
8 metrics
Asserted patents 3 U.S. patents MNTN patent infringement litigation
Enforcement actions More than 20 actions Alpha Modus patent enforcement campaign
Revenue $82.5 million MNTN Q2 2026
Revenue growth 21% year over year MNTN Q2 2026
Adjusted EBITDA $21.5 million MNTN Q2 2026
Net income $6.7 million MNTN Q2 2026
Cash and equivalents Approximately $237.3 million MNTN quarter-end balance
Stock repurchase authorization Up to $100 million MNTN board authorization

Historical Context

5 past events · Latest: Aug 19 (Positive)
Pattern 5 events
Date Event Sentiment 24h Move Catalyst
Aug 19 Leadership appointment Positive +2.6% Added senior agency partnerships executive to expand MNTN's agency ecosystem.
Aug 05 Investor conferences Neutral +5.4% Scheduled management presentations at two upcoming investor conferences.
Aug 04 Quarterly earnings Positive +3.8% Reported revenue growth, profitability improvement, cash holdings, and shareholder repurchase authorization.
Jul 14 Earnings scheduling Neutral +0.3% Announced the date and webcast timing for second-quarter financial results.
Jun 15 Technology integration Positive +2.1% Launched HubSpot integration bringing Connected TV attribution into CRM workflows.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Pattern Detected

MNTN's three positive news events were followed by positive 24-hour reactions, while two informational announcements also recorded positive reactions.

Key Terms

12(b)(6), patent-ineligible subject matter, claim construction, clear-and-convincing-evidence standard, +1 more
5 terms
12(b)(6) regulatory
"MNTN's motion, which sought dismissal under Federal Rule of Civil Procedure 12(b)(6)"
A 12(b)(6) is a court motion asking a judge to dismiss a lawsuit because the written complaint, even if all facts alleged are true, does not claim a legal wrong that the court can remedy. Think of it like asking a referee to stop a game before it starts because the rules cited don’t support the penalty being sought. For investors, a granted 12(b)(6) can cut off a claim early, affecting a company’s potential legal exposure, future costs, and regulatory or disclosure consequences.
patent-ineligible subject matter regulatory
"the asserted Alpha Modus patents were directed to patent-ineligible subject matter"
Categories of inventions that patent laws say cannot be patented, typically including laws of nature, natural phenomena, abstract ideas, and purely mental processes. This matters to investors because if a technology or discovery falls into these categories it cannot receive patent protection, which affects a company’s ability to exclude competitors, monetize intellectual property, and the value or legal risk of its patent portfolio — think of it like rules that prevent anyone from claiming ownership of basic facts or general ideas.
claim construction regulatory
"claim construction and factual discovery could materially inform the analysis"
A judicial process in patent or intellectual property lawsuits where a judge determines the precise legal meaning of the words and phrases in a patent’s claims. Like a referee deciding the exact boundaries of a playing field, claim construction fixes what the patent actually covers, which can decide whether a product infringes the patent or whether the patent is valid; that outcome can materially affect a company’s legal exposure and value to investors.
clear-and-convincing-evidence standard regulatory
"the clear-and-convincing-evidence standard applicable to proving invalidity"
An intermediate legal standard of proof that requires the party with the burden to show their claim is highly probable or reasonably certain, but not to the near-absolute level required in criminal trials. Think of it as needing stronger evidence than a simple balance of probabilities but less than proof beyond a reasonable doubt; it matters to investors because it governs outcomes in civil, regulatory, and administrative disputes that can affect a company’s value and listing status.
adjusted ebitda financial
"MNTN reported revenue of $82.5 million, up 21% year over year, adjusted EBITDA"
Adjusted EBITDA is a way companies measure how much money they make from their core operations, like running a business, by removing certain costs or income that aren’t part of regular business activities. It helps investors see how well a company is doing without distractions from unusual expenses or gains, making it easier to compare companies or track performance over time.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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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 $82.5 million, up 21% year over year, adjusted EBITDA of $21.5 million and net income of $6.7 million. The company ended the quarter with approximately $237.3 million in cash and cash equivalents and no outstanding borrowings. MNTN's board also recently authorized a stock repurchase program of up to $100 million.[3]

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 $16.00 per share, with the company receiving approximately $114.8 million in net proceeds from the shares it sold in the offering.[4][5]

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, $100 million repurchase authorization and MNTN's description of its Connected TV platform.

[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 $114.8 million of net proceeds received by MNTN.

[6] MNTN Investor Relations — Ryan Reynolds Executive Profile.
Source identifying Ryan Reynolds as MNTN Chief Creative Officer and co-founder of Maximum Effort.


FAQ

What did the August 2026 federal court ruling mean for Alpha Modus (NASDAQ: AMOD) in its patent case against MNTN (NYSE: MNTN)?

The ruling keeps Alpha Modus’s patent case against MNTN alive. According to Alpha Modus, the Texas federal court denied MNTN’s motion to dismiss under Rule 12(b)(6) and 35 U.S.C. § 101, finding patent eligibility questions premature and sending the case into claim construction and factual discovery.

Which patents are involved in Alpha Modus’s litigation with MNTN and what technologies do they cover?

The case involves U.S. Patent Nos. 10,360,571, 11,042,890 and 12,026,731. According to Alpha Modus, the asserted patents address real‑time analysis and use of consumer behavioral and interaction data to deliver personalized marketing, engagement, promotional material and purchase opportunities in digital and Connected TV environments.

How many patent enforcement actions is Alpha Modus (AMOD) pursuing as of August 2026?

Alpha Modus reports more than 20 active patent enforcement actions. According to Alpha Modus, these cases target companies operating in retail technology, digital advertising, Connected TV, consumer analytics and AI‑enabled customer engagement, and the MNTN ruling marks a key milestone within this broader campaign.

What were MNTN’s key Q2 2026 financial results mentioned alongside Alpha Modus’s litigation update?

MNTN reported Q2 2026 revenue of $82.5 million, up 21% year over year. According to MNTN, adjusted EBITDA was $21.5 million, net income was $6.7 million, and the company ended the quarter with about $237.3 million in cash and no outstanding borrowings.

What does Alpha Modus Holdings (NASDAQ: AMOD) do in the AI and retail technology space?

Alpha Modus describes itself as a vertical AI company focused on real‑time in‑store shopper engagement and attribution. According to Alpha Modus, its patented “Sense → Decide → Deliver → Attribute” framework measures the impact of digital content, physical interactions and transaction outcomes across the physical retail landscape.

When did MNTN (NYSE: MNTN) go public and how much did it raise in its IPO?

MNTN completed its IPO in May 2025, listing on the NYSE under ticker MNTN. According to MNTN, the offering was priced at $16.00 per share, and the company received approximately $114.8 million in net proceeds from the shares it sold.