Following the initial lawsuit, at least one of Kalshi\u2019s event contracts was changed to list \u201cPrimary Source Agency\u201d as the entity behind verifying flight cancellation data.<\/p>\n
Just a day after real-time flight tracking website FlightAware filed a lawsuit against prediction markets platform Kalshi over use of its name and data, the flight data company gave notice of voluntary dismissal of the case.\u00a0<\/p>\n
In a Tuesday filing in the US District Court for the Southern District of New York, attorneys for FlightAware said that they had voluntarily dismissed the case against Kalshi. The flight tracking company had filed the lawsuit a day earlier, claiming that Kalshi had used its \u201cdata and name to run gambling markets on flight cancellations.\u201d<\/p>\n
While the immediate turnaround could suggest a closed-door settlement, neither company had publicly commented on the case as of Wednesday. On Tuesday, a judge ordered Kalshi to show cause why the court should not issue a temporary restraining order over FlightAware\u2019s trademark and data.\u00a0<\/p>\n
Notably, at least one event contract showed that Kalshi had changed its language from \u201cFlightAware\u201c to \u201cPrimary Source Agency\u201d as the entity responsible for verifying data related to the outcome of flight cancellations, including that the trade did not \u201cindicate an endorsement of this product or any affiliation\u201d between FlightAware and Kalshi. Primary Source Agency linked to FlightAware\u2019s website. Cointelegraph reached out to the companies for comment but did not receive an immediate response.<\/p>\n
Side-by-side comparison of event contract citing FlightAware data before the lawsuit was dropped (left) and after (right). Source: Kalshi<\/p>\n
Related: Kalshi launches sports and crypto perps data feed on DoubleZero<\/p>\n
FlightAware\u2019s suit had alleged trademark infringement, breach of contract, injury to its reputation and unfair competition in the latest legal action involving prediction market companies. Kalshi, Polymarket and other prediction market companies face legal action brought by many US state gaming authorities and regulators over alleged illicit sports betting offered to residents.<\/p>\n
On Tuesday, the US Commodity Futures Trading Commission (CFTC), whose chair Michael Selig has repeatedly claimed the agency has \u201cexclusive jurisdiction\u201c over prediction markets, said it had invoked \u201cemergency authority\u201c to block New York state officials\u2019 attempts to seek a temporary restraining order prohibiting the company from offering event contracts nationwide. The action followed New York authorities filing a lawsuit against Kalshi in July, alleging that the company was operating an unlicensed gambling platform through its contracts on sports and other events.<\/p>\n
The CFTC decision echoed the agency\u2019s actions in a Michigan case over Kalshi. In June, a Michigan judge ordered the company to stop offering sports betting contracts to residents until the civil case reached a conclusion. However, the CFTC under Selig ordered Kalshi not to comply with the state order \u2014 something the company\u2019s head of enforcement and legal counsel said put it in an \u201cimpossible position\u201c between US state and federal orders.<\/p>\n
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