Chexar Cleared of Patent Infringement

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Chexar remains focused on improving the lives of 106 million consumers across the nation that use alternative financial services.

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We believe that the dismissal of this case affirms our conviction that Chexar's solution is unique in its own right.

Valid Systems (820 Technologies LLC) has dismissed its claims for patent infringement against Chexar Networks, Inc. Valid's case (Civil Action No.: 5:07-CV-102-DF in the Eastern District of TX) was dismissed with prejudice, thus acknowledging Chexar's right to continue marketing its industry leading solution for check cashing all types of checks in retail and financial institution locations.

The case had been filed by Valid in July 2009 in its home state of Texas. The suit had sought damages and attorneys' fees because Valid believed that Chexar was infringing U.S. Patent No. 7,528,710, entitled "Monitoring Transactions by Non-Account Holder." Chexar, which is based in Roswell, Georgia, countered the action by asserting that it did not infringe the patent and that the patent was invalid. Earlier this year, Valid submitted its infringement contentions as required by the Court. In response, Chexar submitted its invalidity contentions and then explained the operation of Chexar's system to Valid's attorneys under a court order designed to protect Chexar's trade secrets. Shortly after this meeting, Valid and Chexar filed the dismissal on April 13, 2010.

Drew Edwards, Chexar's CEO, commented that "Chexar is an innovator in the field of check cashing and we respect the rights of other innovators. We believe that the dismissal of this case affirms our conviction that our system did not infringe Valid's patent and that Chexar's solution is unique in its own right. We prefer to spend our energies continuing to innovate rather than defending our rights in baseless legal wrangling. We are pleased with this result."    

About Chexar

CHEXAR® is a technology and verification company that provides its clients with a centralized turnkey risk management system enabling them to safely and profitably offer professional check cashing services at their retail locations. Chexar’s SMART SCOREsm check processing system combines learning databases with live risk management centers to successfully manage the risk of cashing all types of checks. Born originally as a retail financial services provider, Chexar and its team bring insight and support to traditional and non-traditional lenders and retailers, seeking to add check cashing services to their business model. Today Chexar has over 100 employees serving thousands of locations in 36 states and is the fastest growing total solution provider for check cashing in the industry. Chexar’s technology is also available as a hosted system providing robust centralization for volume check cashing operators that want to run their own risk centers.

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