FlightAware has voluntarily dismissed its federal lawsuit against prediction market operator Kalshi just one day after filing the case, bringing the litigation to an abrupt halt while preserving its ability to sue again in the future.
The notice of voluntary dismissal was filed August 11 in the U.S. District Court for the Southern District of New York. FlightAware ended the case without prejudice under Federal Rule of Civil Procedure 41(a)(1)(A)(i), a rule that allows plaintiffs to withdraw an action before defendants file an answer or motion for summary judgment.
The dismissal applies to every defendant named in the lawsuit: Kalshi Inc., KalshiEX LLC, Kalshi Klear Inc. and Kalshi Klear LLC. The filing does not explain why FlightAware chose to withdraw the case and makes no reference to any settlement or agreement between the parties.
The lawsuit had been filed only a day earlier and sought emergency relief over Kalshi’s flight cancellation prediction markets.
FlightAware leaves the door open to sue Kalshi again
In its complaint, FlightAware accused Kalshi of using its flight-tracking data and trademarks without authorization to operate and settle contracts allowing users to wager on airline cancellations. The company sought damages and an injunction to stop Kalshi from using its information and branding.
According to the complaint, Kalshi identified FlightAware as the “Primary Source Agency” for its aviation markets, displayed the FlightAware trademark, linked users to the company’s website and stated that market outcomes were “verified from FlightAware.” FlightAware argued those references created the false impression that it endorsed or participated in the betting products.
The complaint also alleged Kalshi had agreed not to use FlightAware’s AeroAPI data for commercial purposes, including gambling or prediction markets, but continued doing so after receiving a cease-and-desist letter. FlightAware said Kalshi rejected those claims, arguing its references constituted nominative fair use before later adding disclaimers denying any endorsement.
FlightAware further claimed mistaken assumptions that it supported the markets harmed its reputation for independence and said it has “never operated, sponsored, promoted, or participated in a market that permits customers to wager on whether flights will be delayed or cancelled.”
FlightAware just VOLUNTARILY DISMISSED its entire lawsuit against Kalshi.Again, filed yesterday seeking emergency relief over the flight-cancellation betting markets.Dismissed today under Rule 41(a)(1)(A)(i) (without prejudice) before Kalshi even answered.When a plaintiff… t.co/7M3dFhldvz pic.twitter.com/EnL0qdgEAA
— Ariel Givner (@GivnerAriel) August 12, 2026Commentators noted the unusual timing of the dismissal. Ariel Givner, posting on X, wrote that FlightAware had voluntarily dismissed the lawsuit before Kalshi filed any response, adding that cases dropped so quickly after requesting a temporary restraining order often suggest the parties may have reached a private resolution. Neither FlightAware nor Kalshi has publicly confirmed any agreement.
Because the dismissal was entered without prejudice, the company remains free to bring similar claims again if it chooses.
Featured image: Kalshi / Canva
FlightAware drops federal lawsuit against Kalshi after seeking emergency court relief ReadWrite.
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