Overview
- The complaint, filed March 5 in the U.S. District Court for the Central District of California, targets Kalshi’s handling of its “Ali Khamenei out as Supreme Leader?” market.
- Plaintiffs Adam Risch and Yonatan Gliksman allege the platform failed to clearly disclose a death carveout and applied it after reports of Khamenei’s death on Feb. 28.
- Traders who held “yes” contracts expected $1 per share by the March 1 cutoff, but Kalshi halted the market and resolved positions at the last traded price.
- Kalshi says the carveout was part of the market terms from launch to prevent profiting from death, and it reimbursed all fees and net losses so no user lost money.
- The market logged more than $54 million in volume, and the suit seeks full contract payouts and punitive damages as observers weigh potential precedent for prediction-market disclosures.