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Source: Digital Ally Inc.

DIGITAL ALLY ANNOUNCES STAY IN WATCHGUARD CASE IS LIFTED AND CASE IS NOW MOVING TOWARDS TRIAL

The Court Also Indicated a Ruling on Claim Construction is Imminent in the Axon litigation

LENEXA, Kansas, July 05, 2018 (GLOBE NEWSWIRE) -- Digital Ally, Inc. (Nasdaq: DGLY), which develops, manufactures and markets advanced video surveillance products for law enforcement, homeland security and commercial applications, is pleased to announce a significant development in its litigation against Enforcement Video, LLC (d/b/a WatchGuard Video). After successfully defeating all five inter partes review (“IPR”) challenges filed by both WatchGuard and Axon Enterprise, Inc. (“Axon” formerly known as TASER International, Inc.) with the United States Patent and Trademark Office, the Court has lifted the stay and will allow the litigation against WatchGuard to proceed, with no restrictions, towards trial. The parties have until December 2018 to finalize their discovery efforts and a Pretrial Conference has been set for April 9, 2019.

WatchGuard fervently opposed any efforts by Digital Ally to conduct discovery relating to the issues of infringement and damages, but the Court denied this request. Digital Ally will now be allowed to fully conduct discovery into WatchGuard’s use of Digital’s patented technology and the revenue it has obtained from infringing the three asserted patents.

Additionally, the Court also indicated that a ruling on the claim construction briefing in the Axon case is imminent. Once this ruling is issued it will trigger an existing scheduling order that will move the case to trial. If the Court’s order issues this month, as expected, both the Axon WatchGuard cases will be on similar schedules, moving quickly towards separate trials.

“This has been a long and trying battle as both Axon and WatchGuard have done everything they can to prevent these cases from moving forward. We have remained confident in the judicial system and patient with the process, and we are finally seeing movement towards the finish line,” said Digital Ally’s CEO, Stanton E. Ross. “I hope that law enforcement agencies across the country will pay attention to these developments and consider the implications of these lawsuits and a potential injunction when equipping their officers with body cameras from companies that infringe our patents. Now that the stay has been lifted, we are looking forward to vindicating our position with a jury and having both Axon and WatchGuard answer for their conduct,” Ross stated.  

About Digital Ally, Inc.
Digital Ally, Inc. develops, manufactures and markets advanced technology products for law enforcement, homeland security and commercial applications. The Company's primary focus is digital video imaging and storage. The Company is headquartered in Lenexa, Kansas, and its shares are traded on The Nasdaq Capital Market under the symbol "DGLY."  

For additional news and information please visit www.digitalallyinc.com or follow us on Twitter @digitalallyinc and Facebook www.facebook.com/DigitalAllyInc

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This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Act of 1934.  These forward-looking statements are based largely on the expectations or forecasts of future events, can be affected by inaccurate assumptions, and are subject to various business risks and known and unknown uncertainties, a number of which are beyond the control of management.  Therefore, actual results could differ materially from the forward-looking statements contained in this press release.  A wide variety of factors that may cause actual results to differ from the forward-looking statements include, but are not limited to, the following: whether the Company will achieve positive outcomes in its litigation with Axon and WatchGuard; whether the Axon and WatchGuard cases will proceed on approximately the same schedules; competition from larger, more established companies with far greater economic and human resources; its ability to attract and retain customers and quality employees; the effect of changing economic conditions; and changes in government regulations, tax rates and similar matters.  These cautionary statements should not be construed as exhaustive or as any admission as to the adequacy of the Company’s disclosures.  The Company cannot predict or determine after the fact what factors would cause actual results to differ materially from those indicated by the forward-looking statements or other statements.  The reader should consider statements that include the words “believes”, “expects”, “anticipates”, “intends”, “estimates”, “plans”, “projects”, “should”, or other expressions that are predictions of or indicate future events or trends, to be uncertain and forward-looking.  The Company does not undertake to publicly update or revise forward-looking statements, whether because of new information, future events or otherwise.  Additional information respecting factors that could materially affect the Company and its operations are contained in its annual report on Form 10-K for the year ended December 31, 2017 and quarterly report on Form 10-Q for the three months ended March 31, 2018, filed with the Securities and Exchange Commission.

For Additional Information, Please Contact:
Stanton E. Ross, CEO, at (913) 814-7774 or
Thomas J. Heckman, CFO, at (913) 814-7774