[eneveu]

New Zealand startup Montoux shut down after a lawsuit from $46B fintech giant FIS, which accused it of stealing trade secrets—claims Montoux denied. The company had gained traction as an alternative to FIS’s Prophet software, but instead of competing, FIS sued.

Filed in Delaware, the lawsuit alleged Montoux used FIS code and trained AI on proprietary data. With legal costs hitting $600K upfront, Montoux couldn't afford to fight and liquidated. This "lawfare" tactic highlights how corporations use litigation to stifle competition, raising serious questions about monopolistic practices and the barriers to innovation.

[A_D_E_P_T]

> With legal costs hitting $600K upfront

On the one hand, the US legal system is shockingly corrupt and openly pay-to-play.

On the other, if you can't raise $600k -- or $2M -- for a legal defense, you're not really a "promising AI startup." You're something more akin to a garage project.

The smart move for a small company (assuming they don't want to fold) would be to hire an out-of-work lawyer as "part-time in-house counsel" and have them start fighting the case on your company's behalf. File an aggressive response, a motion to dismiss, etc. That way, you've got a fighting chance, and it'll cost >10x less than $600k.