Card Activation Technologies Files Suit Against Five Major National Companies For Infringement Of Its Patent
(2009-01-27)
Chicago, IL January 27, 2009 – Card Activation Technologies (OTCBB:CDVT) today said it has filed lawsuits against four large national retailers and one national restaurant chain. The lawsuits were filed in the U.S. Federal District Court in Chicago on January 21, 2009 against Causal Male Retail Group Inc. (NASDAQ: CMRG), BeBe Stores Inc. (NASDAQ:BEBE), Whole Food Markets Inc.(NASDAQ:WFMI), Barneys of New York, Inc. and Panda Restaurant Group. Card Activation Technologies seeks a royalty from these companies on the activation and processing of debit styled cards, which include gift cards, plus an injunction to halt further use of gift cards pending the companies’ obtaining a license from Card Activation Technologies.
These lawsuits bring the total to 12 filed by the company in the past two years. Card Activation Technologies has settled most of the previous lawsuits. Lawsuits are still pending in U.S. Federal District Court in Chicago against Barnes & Noble (NYSE:BKS) and Aeropostale, Inc. (NYSE:ARO). In addition, over 600 letters have been sent to other companies advising them of the patent.
About Card Activation Technologies
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 is actively seeking to license its technology to the thousands of current users and believes that many retailers, gas stations, phone companies and others that utilize those stored value cards, such as gift and debit, infringe its patent. As a result, the company is aggressively pursuing litigation against these infringements. The Federal Reserve Bank of Philadelphia estimated prepaid card market to be valued in excess of $181.7 billion in transactions in 2006. According to market forecasts, the prepaid industry will grow to $421.5 Billion by 2010. For further information about Card Activation Technologies go to:www.cardactivationtech.com. MedCom USA Inc. (OTC BB: EMED) is a majority shareholder in Card Activation Technologies Inc. www.medcomusa.com.
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 www.sec.gov under "Search for Company Filings."
