FlightAware drops lawsuit against Kalshi a day after filing

FlightAware filed a notice of voluntary dismissal on Tuesday in the U.S. District Court for the Southern District of New York, withdrawing claims it had brought against Kalshi a day earlier. The original complaint alleged trademark infringement, breach of contract, injury to reputation and unfair competition related to Kalshi’s use of flight data and FlightAware’s name in event contracts tied to flight cancellations.

Court papers show a judge had ordered Kalshi to show cause why a temporary restraining order should not issue before the dismissal was entered. Regulators and participants reviewed documents that indicated at least one Kalshi event contract initially cited FlightAware as the verifying source for outcomes. After the lawsuit was filed, the contract language was changed to refer to a “Primary Source Agency” as the verifier and included a disclaimer that the contract did not indicate endorsement or affiliation; that reference linked to FlightAware’s website.

Neither company issued a public statement about the dismissal, and court filings did not disclose any settlement terms or explain the withdrawal.

The lawsuit came as Kalshi faces separate actions from state authorities. New York sued Kalshi in July, alleging the company offered unlicensed gambling through event contracts on sports and other events. In Michigan, a judge ordered Kalshi to stop offering certain sports-related contracts to residents while litigation continues.

The Commodity Futures Trading Commission intervened in some state actions, invoking emergency authority to block New York officials from seeking a nationwide temporary restraining order and instructing Kalshi not to comply with a Michigan order. Court proceedings in the related cases remain active.