Seeking Alpha

Mitek -26.7% after legal setback, CTO's resignation

  • A lawyer for the USAA has disclosed a federal court granted a USAA motion to dismiss Mitek (NASDAQ:MITK) infringement claims related to four patents. A trial on remaining claims is set to begin on Sep. 8.
  • Mitek and the USAA have been suing each other since 2012: Mitek accuses the USAA (a former client) of infringing IP that's crucial to its mobile check deposit offerings, and the USAA has accused Mitek of breach of contract and fraud.
  • Also: Mitek has disclosed CTO Michael Strange has left the company to "pursue other opportunities." (8-K)
  • Strange was hired in 2012. Before joining Mitek, he was the CTO of prepaid debit card provider Green Dot.
Comments (4)
  • Gaucho420
    , contributor
    Comments (225) | Send Message
     
    This is a clear negative. Michael Strange quitting as CTO is a very bad sign of the future and promise of their tech and patents and the fact that their suit versus USAA was dismissed tells me that their legal standing versus USAA is also not as solid as one would have you believe.

     

    I'm not a patent expert nor do I have an ear in the MITK boardroom, but neither of these piece of news can be looked at as anything but really bad news. The fact that Mr. Strange quit after only two years as CTO tells me things are not looking up but rather heading down.

     

    I'm still in it for now, but I will be looking at the first good opportunity to move my capital elsewhere.
    18 Aug 2014, 11:41 AM Reply Like
  • Gaucho420
    , contributor
    Comments (225) | Send Message
     
    And what is this? From the first bullet point link above:

     

    Meanwhile, Senior U.S. District Judge Harry Lee Hudspeth late last month granted Mitek's request to have a separate bench trial on USAA's claim that Mitek failed to disclose to the Patent & Trademark Office that certain individuals in Russia actually invented the technology. According to the judge's order, “USAA alleges that Mitek omitted these inventors with the intent to defraud its shareholders.”

     

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    USAA has been around for a very long time. MITK has not...this is starting to read and sound very fishy, as if one company is so desperate to be legit it'll do anything to get there.
    18 Aug 2014, 11:47 AM Reply Like
  • 224
    , contributor
    Comments (49) | Send Message
     
    Just one thought; regardless of the outcome of the IP lawsuit I just find USAA Insurance ads to be a pandering attempt to market their insurance products via some "special" military exclusivity. It just a sales stick, let's be honest, no higher purpose is served.
    18 Aug 2014, 01:10 PM Reply Like
  • 224
    , contributor
    Comments (49) | Send Message
     
    BTW "Left to pursue other opportunities" is corpspeak for "Fired".
    18 Aug 2014, 01:25 PM Reply Like
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