Bad Faith at the Center of the Ruling
The Federal Circuit said the district court’s bad-faith finding was supported by evidence, including the plaintiffs’ failure to disclose licensing transactions during discovery that materially affected the case. The court also cited misstatements in an amended complaint regarding who held rights to the asserted patent.
Those actions, the court said, justified shifting attorney fees to the plaintiffs.
Supreme Court Closes the Final Avenue
Earlier in 2025, the Supreme Court had already turned away a separate petition from Lowe and Spota challenging the Federal Circuit’s decision upholding the patent’s invalidity. The petition denied Monday focused instead on the sanctions order and the September appellate ruling.
Lowe and Spota argued that the Federal Circuit had acknowledged Spota’s standing to sue, making it improper to penalize the company for continuing to litigate.
“The decision of the district court to award sanctions based on ‘plaintiffs’ conduct in delaying the litigation’ was factually, as well as legally, erroneous,” the petition argued, questioning why the alleged mischaracterization should not be reconsidered on appeal.
The Supreme Court offered no explanation for its denial.
