LATEST AUTO BUZZ AROUND BEN AI AND WRIGHT BREWER

BEN terminated its reseller agreement with AFG and filed a lawsuit over alleged fraud and contract breaches.

Quiver AI Summary

Brand Engagement Network Inc. (BEN) announced the termination of its Exclusive Reseller Agreement with AFG Companies, Inc. due to allegations of fraudulent misrepresentation and a breach of contract related to a concealed ransomware attack. This partnership, established in August 2023 to enhance BEN’s entry into the automotive market, fell short as AFG did not provide the necessary data platform, causing delays in BEN’s automotive initiatives. BEN’s CEO, Paul Chang, emphasized the importance of trust and data security, highlighting that the termination enables them to refocus on delivering AI solutions for the automotive sector. Additionally, BEN is gearing up to launch its Automotive AI Agent, which aims to improve dealership operations, and is expanding its AI healthcare solutions while prioritizing compliance with data security regulations.

Potential Positives

• BEN’s decision to terminate the agreement with AFG allows the company to redirect focus on delivering impactful AI solutions to the automotive industry.
• The lawsuit against AFG highlights BEN’s commitment to protecting its reputation and the integrity of its partnerships by addressing fraudulent actions and security breaches.
• BEN is preparing to launch its Automotive AI Agent, which targets over 13,000 dealerships nationwide, demonstrating its strong commitment to innovation in the automotive sector.
• The expansion of BEN’s AI healthcare solutions underscores its versatility and dedication to delivering secure and efficient technology across multiple industries.

Potential Negatives

• Termination of the Exclusive Reseller Agreement indicates a significant breakdown in partnership which may affect BEN’s market entry strategies.
• The lawsuit against AFG, alleging serious claims like fraudulent misrepresentation, can damage BEN’s reputation and create concerns among potential partners and clients.
• Delayed key automotive initiatives due to AFG’s failure to deliver operational support could hinder BEN’s competitive positioning in the automotive market.

FAQ

What happened to the Exclusive Reseller Agreement between BEN and AFG?

BEN terminated its Exclusive Reseller Agreement with AFG due to alleged fraudulent actions and operational hindrances.

Why did BEN file a lawsuit against AFG?

The lawsuit was filed for fraudulent misrepresentation, breach of contract, and concealing a ransomware attack prior to the agreement.

How did AFG’s actions impact BEN?

AFG’s failure to provide necessary data access delayed BEN’s automotive initiatives and damaged trust in the partnership.

What solutions is BEN launching for the automotive industry?

BEN is launching its Automotive AI Agent to improve dealership operations and support over 13,000 dealerships nationwide.

How is BEN ensuring data security in its AI healthcare solutions?

BEN’s solutions comply with regulations like HIPAA and GDPR, prioritizing data security and the protection of sensitive information.

Disclaimer: This is an AI-generated summary of a press release distributed by GlobeNewswire. The model used to summarize this release may make mistakes. See the full release here.

$BNAI Hedge Fund Activity

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• LIDO ADVISORS, LLC added 185,000 shares (+inf%) to their portfolio in Q3 2024, for an estimated $192,400
• BANK OF AMERICA CORP /DE/ removed 149,990 shares (-99.9%) from their portfolio in Q3 2024, for an estimated $155,989
• SANDIA INVESTMENT MANAGEMENT LP added 80,000 shares (+inf%) to their portfolio in Q3 2024, for an estimated $83,200
• STATE STREET CORP removed 50,700 shares (-70.2%) from their portfolio in Q3 2024, for an estimated $52,728
• GEODE CAPITAL MANAGEMENT, LLC removed 16,032 shares (-13.4%) from their portfolio in Q3 2024, for an estimated $16,673
• MORGAN STANLEY removed 15,427 shares (-36.4%) from their portfolio in Q3 2024, for an estimated $16,044
• VANGUARD GROUP INC added 12,967 shares (+25.4%) to their portfolio in Q3 2024, for an estimated $13,485

To track hedge funds’ stock portfolios, check out Quiver Quantitative’s institutional holdings dashboard.

Full Release

JACKSON, Wyo., Jan. 17, 2025 (GLOBE NEWSWIRE) — Brand Engagement Network Inc.(“BEN”) (NASDAQ: BNAI), an innovator in AI-powered customer engagement solutions, today announced the termination of its Exclusive Reseller Agreement (the “Agreement”) with AFG Companies, Inc. (“AFG”) and the filing of a lawsuit in the Northern District of Texas, Dallas Division, against AFG and its CEO, Ralph Wright Brewer III. The lawsuit alleges fraudulent misrepresentation, breach of contract, and the concealment of a ransomware attack on their network shortly before the agreement was executed.

The Agreement, signed in August 2023, was intended to expedite BEN’s entry into the automotive market. However, AFG’s failure to provide access to the agreed-upon operational-ready data platform hindered BEN’s ability to deliver its AI solutions to dealerships. BEN believes these issues caused significant delays in key automotive initiatives and irreparably damaged trust in the partnership.

“We believe AFG’s actions significantly disrupted our efforts to modernize dealership operations,” said Paul Chang, Chief Executive Officer of BEN. “Terminating the Agreement was essential to protect our strategy and enable us to focus on delivering impactful AI solutions to the automotive industry.”

“The ransomware attack occurred before we would have integrated any of our systems with AFG, and at no point were BEN’s systems, data, or customers ever impacted,” Chang added.

BEN Prepares for 2025 Automotive AI Agent Rollout
BEN is finalizing preparations to launch its Automotive AI Agent, a solution that integrates with major automotive data and service platform providers and supports over 13,000 dealerships nationwide. This initiative highlights BEN’s strong commitment to the automotive sector. The AI Agent streamlines dealership operations by improving lead conversion, automating scheduling, enhancing service efficiency, and providing advanced analytics. Additionally, BEN plans to expand its efforts through pilot programs in the Midwest, stronger reseller partnerships in Mexico, and collaborations with Canadian dealership groups. These initiatives showcase BEN’s dedication to delivering innovative, safe, scalable, and data-driven solutions to meet the evolving needs of automotive dealerships .

AI Healthcare Solutions for Patient Engagement Continues to Expand
BEN continues to expand its AI healthcare solutions to transform patient engagement and streamline communications. These solutions adhere to key regulations, including HIPAA, GDPR, SOC 2 Type 1, and CCPA, ensuring the protection of PII and PHI. By prioritizing robust data security and reducing administrative burdens, BEN empowers healthcare providers to focus on delivering high-quality care.

BEN Prioritizes Trust and Automotive Partnerships
“We understand the importance of data security and trust in the automotive industry, in particular. The termination of this Agreement underscores our zero tolerance for actions that undermine trust,” said Walid Khiari, Chief Financial Officer and Chief Operating Officer of BEN. “This decisive step strengthens our ability to prioritize initiatives that benefit our automotive partners.”

About BEN
Brand Engagement Network Inc. (BEN) is a global leader in AI-powered customer engagement solutions. Headquartered in Jackson, Wyoming, with offices in Seoul, South Korea, BEN delivers advanced technology to enhance data utilization, improve interactions, and drive operational efficiency. BEN provides a secure, scalable AI platform that empowers businesses to build trust and achieve impactful results. Serving industries such as automotive, healthcare, and customer service, BEN uses AI-powered digital agents and advanced tools to streamline operations and enhance experiences. Its validated data is delivered through SaaS, Private Cloud, and On-Premises technology, ensuring data privacy and security while enabling efficient operations.
For more information, please visit www.beninc.ai .

Forward-Looking Statements
Certain statements in this communication are “forward-looking statements” within the meaning of federal securities laws. They are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements reflect, among other things, BEN’s current expectations, assumptions, plans, strategies, and anticipated results, including the ultimate outcome of BEN’s lawsuit against AFG (the “AFG Lawsuit”) and the termination of the Agreement. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks, and changes in circumstances that may differ materially from those contemplated by the forward-looking statements, which are neither statements of historical fact nor guarantees or assurances of future performance.

There are a number of risks, uncertainties and conditions that may cause BEN’s actual results to differ materially from those expressed or implied by these forward-looking statements, including but not limited to: (i) uncertainties as to the timing of the AFG Lawsuit; (ii) the risk that the AFG Lawsuit may not be successful; (iii) the failure to replace the Agreement with alternative arrangements on acceptable terms or at all; (iv) the effect of the announcement or pendency of the AFG Lawsuit and the termination of the Agreement on BEN’s ability to retain and hire key personnel and raise additional sources of capital, its ability to maintain relationships with its customers, suppliers and others with whom it does business, or its operating results and business generally; (v) risks related to diverting management’s attention from BEN’s business as a result of the AFG Lawsuit; and (vi) (A) the risk factors described in Part I, Item 1A of Risk Factors in BEN’s Annual Report on Form 10-K for the year ended December 31, 2023 and (B) the other risk factors identified from time to time in the BEN’s other filings with the Securities and Exchange Commission (the “SEC”). Filings with the SEC are available on the SEC’s website at http://www.sec.gov .

Many of these circumstances are beyond BEN’s ability to control or predict. These forward-looking statements necessarily involve assumptions on BEN’s part. These forward-looking statements may include words such as “believe,” “expect,” “anticipate,” “estimate,” “intend,” “plan,” “project,” “should,” “may,” “will,” “might,” “could,” “would,” or similar expressions. All forward-looking statements attributable to the Company or persons acting on BEN’s behalf are expressly qualified in their entirety by the cautionary statements that appear throughout this communication. Furthermore, undue reliance should not be placed on forward-looking statements, which are based on the information currently available to the Company and speak only as of the date they are made. BEN disclaims any intention or obligation to update or revise publicly any forward-looking statements.

Media Contact
Amy Rouyer
P: 503-367-7596
E: amy@beninc.ai

Investor Relations
Susan Xu
P: 778-323-0959
E: sxu@allianceadvisors.com

QuiverQuant Article – https://www.quiverquant.com/news/Brand+Engagement+Network+Inc.+Terminates+Reseller+Agreement+with+AFG+Companies+and+Files+Lawsuit+Alleging+Fraud

BEN Press Release – https://investors.beninc.ai/news-releases/news-release-details/ben-ends-exclusive-reseller-relationship-afg-advances-automotive