Acusensus Issues 6.1 Million Shares Worth $10m to End Redflex Litigation
Acusensus Limited has settled its patent litigation with Redflex Traffic Systems, issuing over six million shares and paying US$6 million in cash to resolve the dispute. The agreement clears the way for Acusensus to continue its road safety technology operations unimpeded.
- Settlement includes 6.1 million new shares valued at AU$10 million
- US$6 million cash payment to Verra Mobility subsidiary
- Dismissal of legal proceedings with no admission of liability
- Acusensus retains ownership of its global patent portfolio
- Global non-exclusive patent licence granted to Redflex
Background to the Dispute
Acusensus Limited (ASX, ACE), a Melbourne-based technology company specialising in AI-enabled road safety solutions, has announced a global settlement with Redflex Traffic Systems Pty Ltd, a subsidiary of Verra Mobility. The legal proceedings, which began in June 2025, centred on patent disputes involving Acusensus’ intellectual property portfolio.
Terms of the Settlement
Under the terms of the agreement, Acusensus will issue 6,136,475 new shares to VM Consolidated, Inc., a Verra Mobility subsidiary, valued at approximately AU$10 million based on the 20-day volume weighted average price as of early February 2026. Additionally, a cash payment of US$6 million will be made. The legal action will be dismissed with no order as to costs, and importantly, neither party admits liability or wrongdoing.
Patent Rights and Licensing
Acusensus retains full ownership of its worldwide patent portfolio and continues to operate its technology without encumbrance. As part of the settlement, the company has granted Redflex and its affiliates a global non-exclusive licence to the relevant patents. This licence arrangement is designed to prevent further disputes and allows both parties to move forward commercially.
Strategic and Market Implications
This resolution removes a significant legal overhang for Acusensus, enabling the company to focus on growth and innovation in its core markets, which include Australia, New Zealand, the UK, and the US. The settlement also signals a pragmatic approach to intellectual property management in a competitive sector where collaboration and licensing can be more beneficial than protracted litigation.
Looking Ahead
The new shares will be issued following the release of Acusensus’ half-year financial results for FY26, which investors will watch closely for further insights into the company’s financial position post-settlement. The confidential nature of some settlement terms leaves room for speculation about future commercial arrangements between the parties.
Bottom Line?
With litigation behind it, Acusensus is poised to accelerate its innovation and market expansion in road safety technology.
Questions in the middle?
- What are the detailed terms and scope of the global non-exclusive patent licence granted to Redflex?
- How will the share issuance and cash payment impact Acusensus’ financials and shareholder structure?
- Could this settlement pave the way for future collaborations or partnerships between Acusensus and Verra Mobility?
