Acusensus resolves Redflex dispute, retains full patent ownership
Acusensus Limited has announced a global settlement of Federal Court proceedings with Redflex Traffic Systems Pty Ltd, concluding litigation that commenced in June 2025. The Acusensus Redflex Settlement Agreement delivers a resolution valued at $16 million whilst securing critical protections for the AI-enabled road safety technology provider.
The settlement dismisses proceedings with no order as to costs and no admission of liability or wrongdoing by Acusensus. Critically, Acusensus IP Pty Ltd retains registered ownership of its entire worldwide patent portfolio and continues using its technology unencumbered. The resolution removes a material overhang from (ASX: ACE), allowing management to redirect resources from legal defence to commercial execution across its Australian, New Zealand, United Kingdom, and United States operations.
The proceedings had targeted Acusensus IP Pty Ltd (a subsidiary), the parent company, and Managing Director Alexander Jannink. The global settlement now provides certainty across all jurisdictions where the company operates its distracted driving detection, seatbelt compliance monitoring, and worker safety systems.
Joint Statement
“Redflex and the Acusensus parties are pleased to jointly confirm that they have entered into a mutually agreed confidential and worldwide commercial resolution that fully and finally resolves all matters in dispute between the parties.”
What the settlement means for Acusensus shareholders
The settlement package comprises a $6 million cash payment and 6,136,475 new shares to be issued to VM Consolidated, Inc., a wholly owned subsidiary of Verra Mobility (NASDAQ: VRRM), which is the parent company of Redflex. The new shares are valued at $10 million based on Acusensus’ 20-day volume weighted average price of $1.6296 as at 4 February 2026.
Importantly, the shares will be subject to a 12-month voluntary escrow period, preventing immediate selling pressure from entering the register. The share issuance will occur following the release of the company’s 1H FY26 results, providing existing shareholders with clarity on operational performance before dilution takes effect.
The settlement includes a mutual release from all claims on a worldwide basis between the parties and their affiliates. Redflex has undertaken not to challenge the validity of Acusensus’ relevant patents and has agreed not to assist any third party in doing so. This provides long-term patent protection beyond the immediate dispute resolution.
| Settlement Component | Value | Notes |
|---|---|---|
| Cash payment | $6m | Payable to VM Consolidated |
| New share issuance | 6,136,475 shares | Valued at $10m |
| Total package | $16m | — |
| Share escrow period | 12 months | Voluntary |
| Share pricing basis | $1.6296 | 20-day VWAP to 4 Feb 2026 |
Key protections secured
The settlement delivers several protective outcomes for Acusensus:
- Acusensus IP Pty Ltd remains registered proprietor of its worldwide patent portfolio
- Technology use continues unencumbered
- Worldwide mutual release from all claims between parties and affiliates
- Redflex undertakes not to challenge patent validity or assist third parties in doing so
Understanding patent settlements in technology companies
Patent disputes are common in technology sectors where companies develop proprietary systems that may overlap with competitors’ intellectual property claims. Settlements typically aim to eliminate litigation risk whilst preserving commercial relationships and allowing both parties to continue operations without ongoing legal costs.
The Acusensus Redflex Settlement Agreement includes a global non-exclusive licence of relevant patents held by Acusensus IP Pty Ltd to relevant Redflex entities and their affiliates. This arrangement is a standard commercial outcome in intellectual property disputes, converting a legal adversary into a licensed user of the technology. Such licensing arrangements allow the patent holder to monetise their intellectual property whilst retaining ownership and control.
The “no admission of liability” language is standard in settlement agreements. It means neither party accepts fault for the claims raised during proceedings. This protects both companies’ reputations whilst allowing a commercial resolution to proceed. The inclusion of a voluntary escrow period aligns the new shareholder’s interests with existing holders by preventing immediate selling pressure that could depress the share price.
For investors, settlements of this nature remove binary risk from the investment case. Protracted patent litigation can consume significant management time and legal costs whilst creating uncertainty about future product development and market access. The resolution allows Acusensus to focus resources on growth initiatives rather than legal defence.
Operational focus restored for Acusensus
The settlement removes what management describes as the “distraction and ongoing costs of the litigation”, freeing bandwidth to focus on core business development. Acusensus develops AI-enabled road safety solutions including distracted driving detection systems that provide prosecutable evidence of mobile phone use, seatbelt compliance monitoring, speeding detection, railway crossing compliance, and vehicle-of-interest tracking.
The company operates across four key markets: Australia, New Zealand, United Kingdom, and United States. Its technology portfolio extends beyond road safety to include the Forsite worker protection system, which integrates roadside sensors, connected wearables, and real-time analytics to provide construction crews with early warning of approaching vehicle risks in live traffic environments.
The timing of the settlement, ahead of the 1H FY26 results release, allows management to present operational performance without the overhang of ongoing litigation. Legal cost savings and redirected management focus can now support commercial execution and expansion in existing markets.
Background on the dispute
Redflex served proceedings in June 2025 against Acusensus IP Pty Ltd, Acusensus Limited, and Managing Director Alexander Jannink. The specific nature of the claims remains confidential, consistent with standard settlement practice. The resolution applies on a worldwide basis, covering all jurisdictions where both companies operate or may seek to operate in future.
Next steps and timing
The settlement follows a clear sequence that provides certainty for investors modelling the dilutive impact of share issuance:
- Court makes final dismissal orders
- Acusensus releases 1H FY26 results
- 6,136,475 new shares issued to VM Consolidated
- 12-month voluntary escrow period commences
The Court will make final orders dismissing the proceedings with no order as to costs, subject to formal approval. The new share issuance is contingent upon the release of 1H FY26 results, after which the escrow period begins. This timeline allows investors to assess operational performance before the dilution takes effect and ensures the new substantial holder cannot immediately exit their position.
The settlement removes ongoing legal risk from the register, providing clarity on intellectual property ownership and eliminating the possibility of adverse court rulings that could have impacted the company’s ability to commercialise its technology. With patent protections secured and Redflex’s undertaking not to challenge validity, Acusensus can pursue growth opportunities without the uncertainty that characterised the litigation period.
Don’t Miss the Next Tech Breakthrough
Join 20,000+ investors receiving FREE breaking ASX news and in-depth analysis delivered within minutes of release. Click the “Free Alerts” button at StockWire X to get real-time alerts on technology stocks, AI companies, and emerging market movers the moment announcements hit the ASX.