Kalshi consolidated class action (S.D.N.Y.) (Southern District of New York): Status, Rulings and What It Means for Players

Several consumer class actions against Kalshi were consolidated in the Southern District of New York as In re Kalshi Sports Prediction Market Litigation, No. 1:25-cv-08585, before Judge Jennifer L. Rochon, and no class has been certified. The status is motion-to-dismiss, with an as-of date not confirmed in the court record.

There is no settlement and no payout. The arbitration and dismissal motions were scheduled for 2026, and no ruling has been found. This is not one of the state enforcement cases against Kalshi.

Allegations are the plaintiffs'; status rests on the stipulated schedule and trackers because the docket after February 2026 was not retrievable.

What this case is about

In re Kalshi Sports Prediction Market Litigation is the consolidated action in the U.S. District Court for the Southern District of New York, led by Yee v. KalshiEX LLC, filed on October 16, 2025 under docket 1:25-cv-08585-JLR. A complaint states one side's allegations, and only the court's orders decide anything.

What the plaintiffs allege about Kalshi and its affiliates

The plaintiffs allege that Kalshi runs an unlicensed nationwide sportsbook, that its "legal in all 50 states" advertising is false, and that its market-making affiliates and Susquehanna bet against users. These are allegations, not findings.

Kalshi Trading and Kalshi Klear are named as affiliates, and the Susquehanna entities are named in some complaints. The case is one of the prediction market lawsuits we track.

The claims pleaded: loss-recovery statutes and consumer law

The complaints plead state gambling-loss recovery statutes, New York General Business Law 349 and 350, New York General Obligations Law 5-411, the California Unfair Competition Law and Consumers Legal Remedies Act, and unjust enrichment. The false-advertising theory rests on the "legal in all 50 states" wording.

Loss-recovery statutes differ by state, and which states let players sue is mapped in gambling loss recovery statutes by US state.

Who is covered

No one is covered yet: no class has been certified, so the proposed class is only what the plaintiffs ask the court to certify. Filing a settlement claim is always free, and this site is not a law firm and not a claims administrator.

The proposed class and state subclasses

The plaintiffs propose a nationwide class of Kalshi users with state subclasses. Classaction.org prints Pelayo's class as anyone in the U.S. who spent money wagering on Kalshi's mobile or web platforms; we have not read the class definition in the complaint itself.

Who is suing: the plaintiffs and lead counsel

The named plaintiffs are Daniel Yee, Crystal Pelayo, Alexander Hallman, Christopher Jennings, Ian Reynolds and Donovan Roberts, and the court has been asked to appoint Tycko and Zavareei and Lieff Cabraser as interim co-lead counsel. That request comes from the stipulation of February 6, 2026 (Dkt. 35); the appointment order was not retrieved.

The stipulation proposes Katherine M. Aizpuru of Tycko and Zavareei and David Stellings of Lieff Cabraser. How interim counsel and certification work is explained in how a gambling class action works.

Who is not covered

Kalshi users who sued on their own, and the states and tribes suing Kalshi, are not part of this class. Those cases are separate and are listed under related cases below.

Is there a payout?

No payout exists: no class has been certified, there is no settlement, no fund, no claim form and no administrator in this case, and anyone offering a Kalshi settlement payout is not describing it.

Why no payout, claim form or deadline exists

A payout would need a settlement or a judgment, and neither exists. There is no fund and no administrator, and any site offering a claim form here is not official.

What a class member receives depends on the fund, fees, claim rate and caps, which is why class action payout per person cannot be calculated for this case. Kalshi paying contract winnings to its own users is a different matter and not a settlement payout.

What would have to happen first

Before any payment, the court would have to deny or narrow the arbitration and dismissal motions, certify a class, and then the case would have to settle or go to judgment. No timeline exists for any of those steps.

If Kalshi won its arbitration motion, individual claims could be sent out of court. That is a possibility the motion raises, not a prediction of the outcome.

What happens next

The next events are rulings on Kalshi's motion to compel arbitration and to dismiss, and no ruling has been found.

The arbitration and dismissal motions

Kalshi said it would move to compel arbitration and to dismiss, and the parties' proposed schedule set the motion for about April 21, 2026 and replies for June 11, 2026. The schedule is the proposal in the stipulation (Dkt. 35), which also proposed a consolidated complaint by March 24, 2026.

The docket after February 2026 was not retrievable, so the outcome is unknown. How clauses of this kind have fared in other gambling cases is tracked under sent to arbitration or kept in court.

What it means for players today

This case does not decide whether Kalshi's sports contracts are legal in your state; that depends on the court orders for each state.

Appellate rulings elsewhere came in state-regulator cases, not this one. In the Third Circuit Kalshi ruling of April 6, 2026, a 2 to 1 panel sided with Kalshi.

The Ninth Circuit ruled against Kalshi on August 28, 2026 in KalshiEX v. Assad, No. 25-7516 (3 to 0), and the Sixth Circuit did so on September 25, 2026 (3 to 0).

A Supreme Court petition, No. 26-299 Flaherty v. KalshiEX, was filed on September 2, 2026, with responses due December 7, 2026. None of this decides the class action. Orders by state are tracked under Kalshi legal status in every state.

Timeline

The case grew from one filing in October 2025 into a consolidated action by transfers from other districts.

Dates from the stipulation and trackers; the consolidation order date was not retrieved.

What the court has decided so far

No ruling on the merits, on arbitration or on class certification has been found. What exists is the stipulation as a filing, not an order of the court.

The date of the consolidation order was not retrieved. As of November 14, 2026 the status is motion-to-dismiss, and the docket after February 2026 was not retrievable.

Documents and sources

Every date and name comes from the lead docket, the stipulation filed in the case and the trackers named here.

• Lead docket, Yee v. KalshiEX LLC, 1:25-cv-08585, Docket Alarm (primary, paywalled): https://www.docketalarm.com/cases/New_York_Southern_District_Court/1--25-cv-08585/Yee_v._KalshiEX_LLC_et_al/
• Stipulation to consolidate actions, Dkt. 35, February 6, 2026, CourtListener (primary): https://storage.courtlistener.com/recap/gov.uscourts.nysd.651290/gov.uscourts.nysd.651290.36.0.pdf
• Pelayo complaint summary, Classaction.org (secondary, supporting): https://www.classaction.org/news/class-action-lawsuit-claims-kalshi-illegally-runs-online-sports-betting-platform
• Summary of legal actions involving Kalshi, Mick Bransfield (secondary, supporting): https://mickbransfield.com/2025/08/11/summary-of-legal-actions-involving-kalshis-sports-event-contracts/
• Foley tracker of the Kalshi litigation (secondary): https://www.foley.com/?p=130775
• Foley tracker of the circuit split on sports event contracts (secondary): https://www.foley.com/?p=130779

Related cases

Four related cases show how the Kalshi class actions fit together.

Suits folded into this case

Player suits from other states were transferred into this docket.

• Illinois Kalshi class action: Josephson, now S.D.N.Y. 1:26-cv-04126.
• Oregon Kalshi gambling-loss class action: Reynolds, now S.D.N.Y. 1:26-cv-05238.
• Kentucky Kalshi gambling-loss class action: Roberts, now S.D.N.Y. 1:26-cv-05246.

Jennings from Alabama and Lee v. Kalshi were folded in as well, per the trackers.

Other Kalshi cases brought by players and tribes

Other player and tribal suits against Kalshi sit outside this docket.

• Hawaii Kalshi class action: Farias.
• Massachusetts Kalshi and Robinhood class action: Smith.
• California tribes v. Kalshi and Robinhood: Blue Lake Rancheria, with a Ninth Circuit tribal gaming ruling against Kalshi on September 16, 2026.
• Washington AG v. Kalshi: a state case, not a class action.

Every case against the company is collected under Kalshi lawsuits.

Questions people ask

Is there a Kalshi class action lawsuit?

Yes; consumer suits against Kalshi were consolidated in the Southern District of New York as No. 1:25-cv-08585, and no class is certified. See Kalshi lawsuits: every case for the rest.

Who are the plaintiffs in Yee, Pelayo and Hallman?

The named plaintiffs include Daniel Yee, Crystal Pelayo and Alexander Hallman, with Jennings, Reynolds and Roberts transferred in. Counsel is proposed, not yet confirmed by an order we have read.

Can I join the Kalshi class action or file a claim?

No claim form exists and you cannot join an uncertified class. The gambling settlement eligibility checker covers claims that are actually open.

Is there a Kalshi settlement payout?

No; there is no settlement and no payout in this case. See what gambling settlements actually paid each claimant for how paid settlements work.

What did Kalshi get in trouble for?

Players allege an unlicensed sportsbook and false advertising, and states and tribes have sued on gambling-law grounds. The full list is under what Kalshi got sued for.

Has the court ruled on Kalshi's motion to compel arbitration?

No ruling has been found; Kalshi's motion was scheduled for about April 21, 2026.

Is Kalshi legal where I live?

That depends on each state's court orders, not on this case. Check is Kalshi legal in your state for the order and date.

Are other Kalshi class actions pending?

Yes; separate suits include Hawaii and Massachusetts. A separate class action covers prediction markets at Robinhood: Robinhood prediction market class actions.