The flight tracker dismissed its case without prejudice on Tuesday, a day after demanding a restraining order, and Kalshi’s cancellation markets no longer carry the FlightAware name.
Original Image Credits: Diarmuid Greene/Web Summit via Sportsfile / Flickr.com
Posted August 12, 2026 at 5:31 am EST.
FlightAware filed a notice of voluntary dismissal on Tuesday in the U.S. District Court for the Southern District of New York, ending the case it had brought against Kalshi the previous day. The filing dismisses the action against all four defendants, Kalshi Inc., KalshiEX LLC, Kalshi Klear Inc. and Kalshi Klear LLC, and it is without prejudice under Rule 41(a)(1)(A)(i), which leaves the flight tracker free to refile.
The complaint it walked away from was not a modest one. FlightAware had demanded a jury, a temporary restraining order, and preliminary and permanent injunctions, and pleaded six counts including breach of contract and federal trademark infringement. It alleged Kalshi settled flight cancellation contracts on data pulled through a free Personal AeroAPI account opened on July 14, 2022, under terms barring use in furtherance of any business, and that on July 14, 2026 Kalshi self-certified the contracts with the CFTC while naming FlightAware the “Primary Source Agency.” FlightAware said it learned of the markets only when reporters called, cancelled the account the next day and sent a cease-and-desist letter.
This story is an excerpt from the Unchained Daily newsletter.
Subscribe here to get these updates in your email for free
Kalshi has rewritten disputed statements on its website since FlightAware’s initial filing. Contracts that previously said outcomes were verified from FlightAware now reference the “Primary Source Agency,” with the trademark removed and a note that the markets have not been endorsed by that agency or its affiliates, though the link still points to FlightAware’s site.
Corporate lawyer Ariel Givner wrote on X that a plaintiff abandoning a case this quickly after demanding a restraining order usually signals a private arrangement.
The retreat leaves Kalshi’s harder problems intact. New York is seeking at least $36 billion over alleged unlicensed gambling, a suit that prompted the CFTC to invoke emergency powers on Tuesday and order the exchange to keep trading. Washington and Michigan courts have restricted its sports contracts, while a federal judge blocked Minnesota’s ban last month.
Related Listen: DEX in the City: How Kalshi’s Rough Week Became a Federal Fight for Prediction Markets
AI-assisted content: This article was produced with the assistance of AI tools and was reviewed, edited, and fact-checked by a member of the Unchained editorial team before publication.
Regulation,FlightAware,Kalshi,Prediction Markets,yahooFlightAware,Kalshi,Prediction Markets,yahoo#FlightAware #Withdraws #Kalshi #Suit #Day #Filing #Leaving #Data #Question #Unanswered1786530288
