from Hacker News

How A US Fintech Giant Crushed a Promising AI Startup

by eneveu on 2/16/25, 12:26 PM with 2 comments

• by eneveu on 2/16/25, 12:26 PM

  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.