FlightAware LLC has voluntarily dismissed its lawsuit against Kalshi, roughly 24 hours after filing it, following the exchange's decision to remove all direct references to the flight-tracking company from its event-contract markets.

The dismissal, recorded in court records, was filed at 6:13 p.m. on August 11 under Federal Rule of Civil Procedure 41(a)(1)(A)(i), which permits a plaintiff to withdraw a complaint before the defendant has responded. FlightAware dismissed the case "without prejudice," preserving its ability to refile, and the dismissal covered all four named entities: Kalshi Inc., KalshiEX LLC, Kalshi Klear Inc., and Kalshi Klear LLC.

Kalshi Relabels Data Source as 'Primary Source Agency'

Kalshi's flight-cancellation markets previously stated that settlement results were "verified from FlightAware." Following the dispute, the markets were updated to read "verified from Primary Source Agency," accompanied by 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 in a notice on one market page. The notice added that any reference to the 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."

The rapid resolution suggests the parties reached a private arrangement. "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.

Background: FlightAware's Claims and Kalshi's Defense

FlightAware, a flight-tracking service owned by RTX Corporation, sought a temporary restraining order as well as preliminary and permanent injunctions to prevent Kalshi from operating markets tied to its data feed. The complaint alleged breach of contract, trademark infringement under the Lanham Act, and unfair competition.

According to the filing, a Kalshi employee signed up for a paid AeroAPI subscription in 2022, and FlightAware asserted that the subscription terms prohibited commercial use of its data.

FlightAware told the court that markets betting on flight cancellations could incentivize disruptions and "strand travelers, disrupt airline operations, and threaten safety."

Kalshi had previously rejected a cease-and-desist letter from FlightAware, arguing that its use of the company's name constituted nominative fair use. The exchange also stated it could use U.S. Department of Transportation data as an alternative settlement source.

The complaint noted that Kalshi self-certified the contracts with the Commodity Futures Trading Commission (CFTC) in mid-July and designated FlightAware as the primary source agency for settling the contracts. Under the CFTC's self-certification framework, exchanges may list new contracts without prior agency approval. That certification was never litigated in court.

Kalshi, which operates as a federally regulated exchange for event contracts on real-world outcomes, continues to operate its flight-cancellation markets without direct attribution to FlightAware.