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Get filing alertsKatapult settles patent lawsuit, secures perpetual royalty-free license to disputed tech
Filed June 8, 2026 · Period ending June 5, 2026 · ~1 min read
Key Changes
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Katapult settled 20-month patent infringement lawsuit with Flexshopper that sought injunction and damages for alleged infringement of five patents related to its lease-to-own business model.
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Company obtained perpetual, royalty-free worldwide license to all disputed patents for itself and affiliates including Aaron's and CCFI, eliminating future infringement risk across corporate family.
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Both Flexshopper and patent owner ReadySett agreed never to sue Katapult for infringement of these patents in exchange for undisclosed lump sum payment.
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Lawsuit dismissed with prejudice on June 8, 2026, providing finality and eliminating ongoing legal expenses related to this patent dispute.
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Summary
Katapult resolved a significant patent infringement lawsuit filed by competitor Flexshopper in September 2024. The suit alleged Katapult violated five patents covering core lease-to-own technology and sought both an injunction that could have halted operations and substantial damages.
The settlement eliminates this existential threat by granting Katapult a permanent, royalty-free license to use the disputed technology worldwide, extending protection to affiliates Aaron's and CCFI. For retail investors, this removes a major overhang. Patent litigation can be expensive and unpredictable, and an adverse ruling could have forced costly business model changes or ongoing royalty payments.
The perpetual license means Katapult can operate without future infringement concerns from these patents. The undisclosed settlement amount is the key unknown—investors should watch the next quarterly filing to assess the financial impact and whether it was material enough to affect earnings or cash position.
Section-by-Section Diff
Event · Item 8.01 — Other Events
Item 8.01 — Other Events filed; see Key Changes for terms.
Added in current filing · verify on EDGAR →
On June 5, 2026, Katapult Holdings, Inc. (the “ ... Company”) reached an agreement to settle a putative patent lawsuit, captioned Flexshopper, Inc. v. Katapult Holdings, Inc., filed on September 30, 2024 in the U.S. District Court for the Eastern District of Texas, Marshall Division, (Case No. 2:24-cv-00795-JRG). The complaint alleged patent infringement of United States Patent Nos. 10,089,682; 10,282,778; 10,891,687; 11,966,969; and 12,067,611 (“Subject Patents”) and sought an injunction as well as damages for alleged lost profits and willfulness.
Katapult was sued in September 2024 for allegedly infringing five patents owned by Flexshopper. The lawsuit sought both an injunction to stop Katapult's operations and monetary damages including lost profits and willfulness penalties. The company has now settled this litigation.
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Figures/quotes linked to EDGAR · Narrative written by AI · Jun 10, 2026 · How we verify