FOLLOW US

America September 22, 2026 3 mins read

Cigna $1.8M Legal Fees Award Caps String of Patent Defeats

America ı By Rachel Moore

0 Comments

Cigna $1.8M legal Fees award

Filing multiple patent lawsuits against different companies can sometimes feel like planting several bets on the same losing horse — and that's essentially what unfolded for Alexsam Inc. this week. A Texas federal magistrate judge awarded Cigna Corp. nearly $1.8 million in legal fees after the insurance company was cleared of infringing a card payment patent, arriving just days after the same judge ruled that a shopping mall owner and a gift card company were also entitled to fee awards stemming from the very same legal battle.

The Ruling That Sealed Cigna's Victory

U.S. Magistrate Judge Roy S. Payne granted Cigna's bid for $1,757,577 in fees on Friday, in a suit originally brought by Alexsam. Back in 2022, U.S. District Judge Robert W. Schroeder III had adopted a report finding that Cigna didn't infringe the patent at the center of the dispute. Judge Payne didn't mince words about the case's unusual nature, stating it "stands out among all the cases the court has been assigned in more than 30 years" — a striking characterization from a judge with decades of cases to compare it against.

An "Extraordinary" Request, Rejected

According to Judge Payne, Alexsam had attempted what he called a "simply extraordinary" maneuver — asking the court to disregard binding precedent established by the Federal Circuit. That precedent traced back more than a decade, to a Federal Circuit decision that overturned part of a multimillion-dollar verdict against a point-of-sale system provider in the case Alexsam v. IDT, which centered on U.S. Patent No. 6,000,608 — the very same patent Alexsam was now asserting against Cigna.

A Pattern of Litigation Across Multiple Defendants

Cigna was originally sued in 2020, after Alexsam had already filed separate suits against shopping mall company Simon Property Group and gift card business Blackhawk Network in Texas federal court — meaning Cigna's case was just one thread in a much larger litigation tapestry Alexsam had woven around this single patent.

A Costly Two-Day Stretch for Alexsam

Just two days before ruling against Alexsam in the Cigna matter, Judge Payne had already granted Simon Property Group's motion for attorney fees and costs, along with Blackhawk Network's separate motion for fees and sanctions. In both of those earlier rulings, the court had similarly found that neither company had infringed the patent in question — meaning Alexsam went from potential three-way payday to a three-way fee liability in the span of less than a week.

Silence From Both Sides

Counsel for the parties did not immediately respond to requests for comment Friday, leaving the ruling to speak for itself in the immediate aftermath.

The Patent and the Legal Teams Involved

The patent at the center of this entire saga remains U.S. Patent No. 6,000,608. Alexsam is represented by Jacqueline K. Burt, Timothy C. Davis and W. Lee Gresham III of Heninger Garrison Davis LLC, Steven W. Ritcheson of Insight PLC, and William Cornelius of Wilson Robertson & Cornelius PC.

Cigna, meanwhile, is represented by Neil J. McNabnay, Ricardo J. Bonilla, Bret T. Winterle, David B. Conrad, Lance E. Wyatt and Sarika N. Patel of Fish & Richardson PC.

For Alexsam, what began as a coordinated legal offensive against three separate companies has instead ended in a costly trifecta of defeats — a reminder that in patent litigation, spreading a claim across multiple defendants doesn't multiply the odds of success, it simply multiplies the exposure when a court decides the underlying claim doesn't hold up at all.

Previous Article

Binance $100M Circle Investment Deepens Stablecoin Alliance

Read More
403 Posts

Rachel Moore

Rachel Moore is a staff writer and journalist for the USA Herald, where she specializes in high-impact reporting on international conflicts, economic shifts, and scientific advancements.

Discussion

No comments yet. Be the first to join the discussion!

Don’t Miss It
America October 30, 2026 Missile Defenses Deployed Near Trump’s Mar-a-Lago By – Michallie K Harrison
America October 30, 2026 Army Paid $533M for a Shell Plant That Failed to Deliver By – Michallie K Harrison
America October 30, 2026 Army Mass Graves Training: Who Are These Burials For? By – Michallie K Harrison
America October 30, 2026
Pentagon Tells Congress Iran War Has…

WASHINGTON, D.C. — The Pentagon has told Congress that the…

By – Derek Johnson
America October 30, 2026
U.S. Intelligence Reveals China’s Secret Spaceplane…

What This Orbital Image Reveals 1. A newly unclassified U.S. intelligence…

By – Samuel Lopez
America October 29, 2026
North Korea-Linked Hackers Hit Binance In…

Inside the Binance Breach Binance estimates roughly $6.3 billion in…

By – Samuel Lopez
Industry News October 29, 2026
GuideOne Cited Expense and Authority Violations…

GuideOne Insurance fired Mark Groenheide, its senior vice president of…

By – Rochdi Rais
America October 29, 2026
Hippo Partners With Greenlight Re to…

Launching a new insurance program is a bit like building…

By – Rachel Moore
America October 29, 2026
Patrick Stewart Died at 86, Closing…

Some actors play a role. A rare few lend their…

By – Rachel Moore
America October 29, 2026
GM $220M Settlement Ends Multistate Probe…

A dashboard is supposed to tell you how fast you…

By – Rachel Moore
America October 29, 2026
Markel Enstar Unit Reinsurance Agreement Locks…

Old liabilities have a way of lingering like a long…

By – Rachel Moore
America October 29, 2026
Colorado Mountain Students Found Dead After…

Mountains in October can change their mood within hours, like…

By – Tyler Brooks
America October 29, 2026
DoorDash Acquire Instacart Bid Aims to…

When two of the biggest names in delivery decide to…

By – Tyler Brooks
America October 29, 2026
DHS Data Leak Exposes 40,000 Employees,…

Agencies that spend their days collecting other people’s information rarely…

By – Tyler Brooks
America October 29, 2026
Nvidia CEO Chinese Spy Report: Company…

Few stories combine Silicon Valley, the White House and Beijing…

By – Tyler Brooks
America October 29, 2026
Tennessee Killer Escapes; Police Cite Five-Hour…

TIPTONVILLE, Tenn. — A convicted murderer remained at large Thursday…

By – Michallie K Harrison
America October 29, 2026
Brewers Beat Rays to Win First…

ST. PETERSBURG, Fla. — The Milwaukee Brewers won their first…

By – Michallie K Harrison
America October 29, 2026
DHS Data Leak Exposes 41,000 Workers…

WASHINGTON — A newly published data trove has exposed records…

By – Michallie K Harrison
America October 28, 2026
Reported FEC Cyberattack Disrupts Filings Before…

WASHINGTON — A reported cyberattack forced the Federal Election Commission…

By – Michallie K Harrison
America October 28, 2026
Pentagon Ketamine Contract: $41M Deal Under…

WASHINGTON — The Pentagon has awarded a Singapore-based pharmaceutical company…

By – Michallie K Harrison
America October 28, 2026
Flávio Bolsonaro in Florida: Visa Approved,…

MIAMI — Brazilian Sen. Flávio Bolsonaro arrived in Florida on…

By – Michallie K Harrison
America October 28, 2026
Kroger $17M Settlement Claim: Shoppers Could…

Kroger has agreed to a $17 million class action settlement…

By – Tyler Brooks
America October 28, 2026
Michigan Double-Digit Health Insurance Hikes Set…

Michigan residents are facing another costly year for health coverage,…

By – Tyler Brooks
America October 28, 2026
Wendy’s $1.4B Takeover Proposal Puts Fast-Food…

A consortium of investors led by Trian Fund Management has…

By – Tyler Brooks
America October 28, 2026
Flight Attendant $25K Sweepstakes Scam: American…

An American Airlines flight attendant is facing multiple felony charges…

By – Rachel Moore
America October 28, 2026
NLRB Memphis Subregional Office Closure Shifts…

The National Labor Relations Board is closing its Memphis subregional…

By – Rachel Moore
America October 28, 2026
Spain Train Crash Kills at Least…

At least 68 people were killed Wednesday when a Spanish…

By – Rachel Moore
America October 28, 2026
Miyoko Plant Butter Recall Sparks Food…

A plant-based butter product distributed across 10 states is being…

By – Rachel Moore
America October 28, 2026
CDC Warns Drug-Resistant Germs Threaten Modern…

WASHINGTON — Drug-resistant germs are causing millions of infections and…

By – Michallie K Harrison
America October 27, 2026
Walmart Great Value Fruit Cocktail Recall…

A canned fruit product sold at Walmart is under recall…

By – Rachel Moore
America October 25, 2026
Christina Applegate Reveals Multiple Sclerosis Misdiagnosis,…

LOS ANGELES — Christina Applegate, the Emmy-winning actor known for…

By – Jackie Allen
America October 23, 2026
Humana and UnitedHealthcare Cancel Medicare Advantage…

Nearly 1 million Americans are facing a shake-up in their…

By – Tyler Brooks
America October 23, 2026
Plutonium Pit Production Faces Safety and…

WASHINGTON — The Energy Department has approved full construction of…

By – Michallie K Harrison
America October 23, 2026
Connor Hellebuyck Traded to New Jersey…

The New Jersey Devils have made a major move to…

By – Tyler Brooks
America October 19, 2026
Information Ecosystem: Five Tools to Detect…

The information ecosystem is increasingly vulnerable to misinformation. There are…

By – Jackie Allen
America October 19, 2026
An Airman Died After a Pregame…

By Michallie K. Harrison | Opinion Tech. Sgt. Ian Patterson’s…

By – Michallie K Harrison
America October 16, 2026
NFL Player $300M Hip Surgery Lawsuit…

Athletes bet their bodies on surgeons the way pilots bet…

By – Tyler Brooks
America October 16, 2026
Russian Drone Strikes Hit American Businesses…

Russian drone strikes against American-linked businesses in Ukraine are raising…

By – Jackie Allen
America October 11, 2026
AP Poll Top 25: Georgia Claims…

Georgia has reclaimed the top spot in the AP Poll…

By – Rachel Moore

No posts found.

No posts found.

Signup for the USA Herald
exclusive Newsletter