On July 6, 2026, the firm achieved the dismissal with prejudice of a patent infringement lawsuit brought by Loyal-T Systems LLC ("Loyal-T") against American Express Company and American Express Travel Related Services Co., Inc. ("Amex") in the U.S. District Court for the Southern District of New York.

The lawsuit was initially filed by Loyal-T in May 2023 in the U.S. District Court for the District of New Jersey, accusing Amex of infringing two related patents claiming methods of administering loyalty point programs. The accused system included features allegedly practiced in Amex's Membership Rewards loyalty point program and Amex’s Plenti Rewards program. The firm filed a motion to dismiss or transfer the case to the U.S. District Court for the Southern District of New York based on improper venue, which was granted by the New Jersey Court in October 2024. Following the transfer, Loyal-T filed its First Amended Complaint.  Amex filed a first motion to dismiss for failure to plead a cause of action.  That motion was granted but the Court allowed Loyal-T an opportunity to amend.  Loyal-T filed its Second Amended Complaint shortly thereafter to fix the issues with the First Amended Complaint.  Amex then filed a motion to dismiss the Second Amendment Complaint because the complaint asserts theories of infringement that fail as a matter of law.

The Court granted the motion to dismiss with prejudice, finding that Loyal-T failed to cure the defects of the First Amended Complaint and did not provide sufficient evidence to state a claim. The ruling is a significant victory for Amex as it safeguards Amex's popular Membership Rewards Program.

To read the Court's opinion, please click here.

To read press coverage from Bloomberg Law, New York Law Journal, and Law360, please click here, here, and here.