Katapult Holdings Inc. (NASDAQ: KPLT) reached a settlement agreement on June 5 with Flexshopper Inc. to resolve a patent infringement lawsuit filed in September 2024.

The lawsuit, filed in the U.S. District Court for the Eastern District of Texas, alleged that Katapult infringed five patents related to lease-to-own technology. Flexshopper sought an injunction and damages for alleged lost profits and willfulness.

Under the settlement terms, Katapult and its affiliates received a nonexclusive, perpetual, irrevocable, fully paid-up, royalty-free, worldwide license to the disputed patents. The agreement covers Katapult's affiliates including Aaron's Intermediate HoldCo Inc. and CCF Holdings LLC.

Flexshopper and ReadySett LLC, which purchased the patents, agreed to release all claims against Katapult and its affiliates and promised not to pursue future litigation over the patents. In exchange, Katapult agreed to pay a lump sum amount to Flexshopper, though the specific payment amount was not disclosed.

The claims were dismissed with prejudice on June 8, according to the company's statement.

The settlement resolves disputes over U.S. Patent Nos. 10,089,682; 10,282,778; 10,891,687; 11,966,969; and 12,067,611, which relate to lease-to-own business methods and technology.