Aviation data provider FlightAware has sued prediction-market operator Kalshi, alleging the firm used FlightAware’s data and branding without permission to offer wagers tied to airline disruption.
FlightAware Alleges Unauthorized Use of Brand and Information
According to a report by Reuters on Monday, the flight-tracking company said the setup could mislead users into thinking FlightAware is connected to the contracts, according to a complaint cited by Reuters filed in New York’s Southern District Court.
Kalshi did not immediately respond to Benzinga‘s request for comment.
FlightAware is asking for damages that were not specified and for court orders that would stop Kalshi from using its data and branding, along with a jury trial, the report said.
Kalshi unveiled its flight-cancellation markets in July, offering customers a way to take positions on the risk that flights get called off. The rollout drew pushback, with critics warning that such products could reward behavior that interferes with air travel or even leads to airport shutdowns.
FlightAware argues Kalshi identified it as the main source used to determine how the contracts settle, despite not getting permission to use FlightAware’s name, trademarks, or data.
Disclaimer: Kalshi and Benzinga have an existing data collaboration agreement.
Kalshi’s Potential IPO
The lawsuit comes as Kalshi reportedly explores a potential IPO and has been linked to a valuation of around $40 billion in private-market discussions.
The platform also said that it was partnering with Nasdaq Inc. (NASDAQ:NDAQ) to deploy the exchange operator’s market surveillance technology, as Kalshi faces increasing scrutiny over potential insider trading and market manipulation on prediction markets.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by a Benzinga editor.
Check out more of Benzinga’s Future Of Mobility coverage by following this link.
Photo courtesy: Shutterstock
Recent Comments