Flight tracking company FlightAware has voluntarily withdrawn the lawsuit it filed against prediction market platform Kalshi on Monday.

 

Although the reason for the withdrawal was not explicitly stated in the dismissal notice filed with the U.S. District Court for the Southern District of New York, the filing revealed that the lawsuit was dismissed without prejudice, meaning FlightAware could potentially refile the case in the future.

 

FlightAware's withdrawal of the lawsuit comes shortly after it sued Kalshi over the alleged unauthorised use of its data, name, and trademarks for its flight cancellation prediction markets.

 

FlightAware alleged that Kalshi, without authorisation, used its proprietary flight data while publicly naming FlightAware as the “Primary Source Agency” and stating that all outcomes in its flight prediction markets were verified by FlightAware.

 

According to the original lawsuit filed against Kalshi, FlightAware claimed that it had sent cease-and-desist letters demanding that Kalshi refrain from using its data and trademarks, citing potential reputational damage. FlightAware said Kalshi ignored all of these warnings.

 

While neither party has issued an official statement following the filing and subsequent withdrawal of the lawsuit, some have speculated that the two parties may have reached a private agreement or settlement, potentially explaining the swift withdrawal of the case.

 

Kalshi Continues to Face Lawsuits on Multiple Fronts

 

Kalshi has continued to battle several lawsuits, particularly from state regulators, over alleged violations of state gambling laws, with its lawsuit against the New York attorney general being its most recent state-level battle.

 

Although the U.S. Commodity Futures Trading Commission (CFTC) has lately been throwing its weight around Kalshi and other prediction market platforms as it seeks to assert itself as the primary agency with jurisdictional authority over prediction markets in the U.S., Kalshi still has active court cases involving more than 15 U.S. states.