COLUMBIA, Mo. - American Outdoor Brands, Inc. (NASDAQ:AOUT) filed a patent infringement lawsuit today against Eposeidon Outdoor Adventure, Inc. and KastKing Fishing Tackle, Inc. in the U.S. District Court for the Eastern District of Texas. The company, with a market cap of $115 million, has seen its stock rise over 20% year-to-date.
The company alleges the defendants violated patent rights related to its BUBBA multi-flex interchangeable fillet knife products. The lawsuit seeks injunctive relief, monetary damages, and a finding of willful infringement, according to a press release statement.
American Outdoor Brands claims the technology is covered by U.S. Patent Nos. 12,285,879 and 12,441,011, with additional patents pending. The company's patented designs include the Flex-Change locking system used in its fillet knife line.
The complaint alleges Eposeidon began selling KastKing Interchangeable Fillet Knife Kits without authorization from American Outdoor Brands. The company states it provided repeated notice to KastKing about the alleged infringement before filing the lawsuit.
"We filed this action because we believe KastKing has deliberately copied these patented innovations and continued selling the infringing products despite repeated notice," said Brian Murphy, President and CEO of American Outdoor Brands.
According to InvestingPro analysis, the company is currently undervalued and analysts predict profitability this year despite recent challenges.
The company is requesting an order requiring Eposeidon to remove infringing products from the market, compensation for past infringement, and treble damages with attorneys' fees.
American Outdoor Brands stated its patent portfolio has grown by more than 50% over the past five years and now includes over 400 active or pending patents. The company produces outdoor products under brands including BUBBA, Caldwell, Crimson Trace, and Schrade.
In other recent news, American Outdoor Brands reported a significant earnings beat for the third quarter of 2026. The company posted earnings per share of $0.12, surpassing the forecasted $0.07, marking a surprise of 71.43%. Revenue also exceeded expectations, coming in at $56.6 million compared to the anticipated $55.16 million. These results highlight a positive performance for the company in this period. Despite the earnings surprise, there was a decline in the company's stock in after-hours trading. The earnings and revenue figures are crucial for investors assessing the company's financial health. These developments provide a factual basis for understanding the company's recent performance.