On April 8, 2025, Secure Mobile Transactions LLC filed a patent infringement action in the Eastern District of Texas against WoodForest Financial Group, Inc. and a cluster of regional and national banks including Bank of Texas (a division of BOKF, N.A.), Charles Schwab Bank, Comerica Bank, Frost Bank, Independent Financial, Prosperity Bank, Regions Bank, WoodForest Financial Services, and WoodForest National Bank. The suit asserted three U.S. patents — US11288647B2, US9792596B2, and US10546285B2 — covering authentication systems for mobile and card-based payment transactions.

The case closed on October 1, 2025 via a joint motion to dismiss. The court granted dismissal with prejudice as to all of plaintiff’s infringement claims against the defendant banks, while defendants’ counterclaims and defenses were dismissed without prejudice. Costs and attorneys’ fees were ordered to be borne by each party separately, with no fee-shifting award in either direction. The asymmetric dismissal structure — plaintiff’s claims extinguished permanently, defendants retaining the right to revive counterclaims — is consistent with a negotiated settlement in which plaintiff received some form of consideration.

At 176 days, the matter resolved significantly faster than the median E.D. Texas patent case, suggesting substantive settlement discussions began shortly after filing. The financial terms of any agreement are not reflected in the public record. Notably, the case involved ten defendant entities across multiple banking brands, which typically adds coordination complexity; the joint motion suggests all parties reached a unified resolution simultaneously. The precise royalty structure or licensing outcome, if any, remains undisclosed.