Card Activation Technologies Files Suit Against TJX Companies For Violation of Patent; Seventh Major Lawsuit Filed
(2007-11-14)
Chicago, IL (November 14, 2007) – Card Activation Technologies (OTC BB:CDVT) today said it has filed a suit against Framingham, Massachusetts-based TJX Companies, Inc. (NYSE:TJX) the leading operator of discount chains in the US. TJX Companies operates 851 TJ Maxx, 778 Marshalls, 287 HomeGoods, 130 A.J. Wright and 34 Bob’s Stores throughout the U.S. The lawsuit was filed in the U.S. Federal Court in Chicago on November 6, 2007. Card Activation Technologies seeks a royalty from TJX Companies on the activation and processing of its gift cards, plus an injunction to halt further use of gift cards pending TJX obtaining a license agreement from Card Activation Technologies.
According to its SEC filings, TJX Companies achieved $17.4 billion in net sales for fiscal 2007, ended January 27, 2007, of which 78 percent were from US stores. Although there are no specific figures available as to how much of these sales are attributed to gift cards or other stored value cards, it is believed that the total could be significant.
This lawsuit is the seventh filed by the company in the past two years. Other lawsuits are pending in U.S. Federal Court in Chicago against Sears Holding Corporation Walgreen Company Barnes & Noble, Aeropostale, Inc. and OfficeMax Inc. In addition over 400 letters have been sent to other retailers advising them that they are violating the Company’s patent, which has been independently valued at $3.7 billion.
Card Activation Technologies, Inc. is a Chicago-based company that owns proprietary patented payment transaction technology used for processing gift cards, phone cards and other debit purchase transactions. The company believes that many current retailers, gas stations, phone companies and others that utilize those debit cards infringe its patent and is aggressively pursuing litigation against these infringements. Visit www.cardactivationtech.comfor more information.
Certain statements in this press release that are not historical facts are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements may be identified by the use of words such as "anticipate," "believe," "expect," "future," "may," "will," "would," "should," "plan," "projected," "intend," and similar expressions. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of Card Activation Technologies, Inc. (the Company) to be materially different from those expressed or implied by such forward-looking statements. The Company's future operating results are dependent upon many factors, including but not limited to the Company's ability to: (i) defend its patent; (ii) build the management and human resources and infrastructure necessary to support the growth of its business; (iii) competitive factors and developments beyond the Company's control; and (iv) other risk factors discussed in the Company's periodic filings with the Securities and Exchange Commission, which are available for review at http://www.sec.gov under "Search for Company Filings."
Bev Jedynak Paul Knopick
Martin E. Janis & Company, Inc. E & E Communications