Class action
Yee v. KalshiEX LLC, et al. (consolidated)
U.S. District Court for the Southern District of New York, 1:25-cv-08585-JLR (lead); member cases include 1:25-cv-09913 (Pelayo), 1:26-cv-00317 (Hallman), 1:26-cv-01924 (Jennings)
Pending
Consolidated before Judge Jennifer L. Rochon with interim co-lead counsel appointed. A March 20, 2026 stipulation set a consolidated complaint for April 7, 2026 and a motion to compel arbitration for May 5, 2026, with briefing through June 25, 2026. No ruling on arbitration was found.
The question
Whether Kalshi's sports event contracts are unlawful gambling under state law that consumers can sue over, and whether users' claims must go to arbitration under Kalshi's terms.
Daniel Yee filed a putative class action against Kalshi entities in federal court in Manhattan on Oct. 16, 2025, and the Pelayo and Hallman suits followed. Judge Jennifer Rochon consolidated them and appointed interim co-lead counsel. In March 2026 a class action first filed in Alabama by Christopher Jennings, which also names the market maker Susquehanna, was transferred in and folded into the consolidated case. Trackers describe the cases as challenging Kalshi's sports contracts as unlawful sports wagering; these are the plaintiffs' allegations. A motion to compel arbitration was scheduled for May 2026, and no ruling has been reported.
Docket timeline
Judge Rochon approved a stipulation consolidating Jennings with the already-consolidated Yee, Pelayo and Hallman actions, setting a consolidated complaint for April 7, 2026 and a motion to compel arbitration for May 5, 2026 (responses June 4, 2026, replies June 25, 2026).
Source: dockets.justia.com
The Alabama court transferred Jennings to the Southern District of New York on the defendants' joint motion.
Source: dockets.justia.com
Christopher Jennings filed a class action against Kalshi entities and Susquehanna in the Middle District of Alabama (No. 2:26-cv-00071).
Source: dockets.justia.com
A stipulated order set a schedule for Kalshi's motion to compel arbitration and/or dismiss (due Jan. 14, 2026), with a hearing to be sought in April 2026.
Source: dockets.justia.com
Daniel Yee filed suit against KalshiEX LLC and related Kalshi entities (No. 1:25-cv-08585), invoking diversity jurisdiction.
Source: dockets.justia.com