A data-licensing claim against Kalshi collapsed in 24 hours without a ruling

Kalshi continues to operate its flight-cancellation markets. FlightAware’s name disappeared from the markets.

The flight tracker dropped its lawsuit Tuesday, a day or so after filing it, after Kalshi renamed the data source behind the contracts.

Kalshi relabels its source and the case disappears

Kalshi told traders the cancellation results were “verified from FlightAware.” The markets now read “verified from Primary Source Agency” with a link to the FlightAware website.

“This market and these products have not been endorsed by the Primary Source Agency or its affiliates,” Kalshi wrote. Any reference to that agency’s delay and cancellation page is “descriptive only and do not indicate an endorsement of this product or any affiliation between the Primary Source Agency or its affiliates and Kalshi,” a notice on one market page reads.

Court records show that FlightAware’s notice came at 6:13 p.m. on August 11 under Rule 41(a)(1)(A)(i), which allows a plaintiff to walk away before the defendant responds.

FlightAware dismissed the case “without prejudice,” so it can refile, and the dismissal covered all four named entities. Those are Kalshi Inc., KalshiEX LLC, Kalshi Klear Inc. and Kalshi Klear LLC.

Speed like that points to a handshake off the docket. “When a plaintiff drops a case this fast after demanding a TRO, it usually means the parties worked something out privately,” wrote Ariel Givner, a corporate lawyer and founder of Givner Law, on X.

Why FlightAware’s leverage was thinner than its complaint

FlightAware, which is owned by RTX Corporation, offers one of the largest flight tracking services.

It sought a temporary restraining order and preliminary and permanent injunctions to prevent Kalshi from operating any market relating to its feed. It alleged breach of contract, trademark infringement under the Lanham Act, and unfair competition.

A Kalshi employee signed up for a paid AeroAPI subscription in 2022, and FlightAware said the terms prohibited commercial use.

The company told the court that markets on whether flights get canceled give traders a reason to want disruptions and could “strand travelers, disrupt airline operations, and threaten safety.”

Kalshi had already rejected the cease-and-desist that came before the lawsuit, claiming its use of the FlightAware name was nominative fair use. It also said it could use U.S. Department of Transportation data as a settlement source.

The complaint says Kalshi self-certified the contracts with the Commodity Futures Trading Commission (CFTC) in mid-July and designated FlightAware as the primary source agency to settle the contracts. The certification was never litigated in the courts.

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