Seattle, Wash. — Scott A. Bright, a Bellevue resident, has filed a lawsuit against KalshiEX LLC and Kalshi Inc., alleging that he lost $315,353.94 while trading sports‑event contracts on the platform between June 17 and August 14, 2026.
Bright’s complaint, filed in federal court, seeks $580,544.98 in damages and additional relief. He says the Washington attorney general sued KalshiEX on March 27, 2026 over its state operations, and that a King County judge issued a preliminary injunction on July 17, later amended on August 12.
Kalshi’s response
Kalshi filed a motion on Oct. 30 asking the judge to dismiss each of Bright’s claims under Washington’s Loss Recovery Act, the Consumer Protection Act, and the doctrine of unjust enrichment. The company emphasizes that it has operated since 2020 as a designated contract market regulated by the Commodity Futures Trading Commission.
According to the motion, Bright did not allege any misrepresentation about fees, how the platform works, or the risk of a losing position. Kalshi argues its fees are not tied to a trader’s profit or loss and that any loss is transferred to the counter‑party in the trade.
Key disputes
The companies contend that Bright’s complaint fails to identify the specific events, dates, or amounts underlying the $580,544.98 figure and does not specify his physical location for each transaction. They assert that the platform’s member agreement and rulebook govern the relationship between users and the company.
Bright’s filing notes that the app displayed a location warning, stating, “Using this app in your current location is prohibited,” but does not detail how this warning affected his trades.
Pending stay request
In a separate filing, Kalshi and KalshiEX asked the court to pause the case for six months while the U.S. Supreme Court considers a petition in Flaherty v. KalshiEX LLC. The proposed stay would require joint status reports every 90 days and an additional update after the Supreme Court resolves the petition.
The court has scheduled oral argument for Nov. 27, 2026.
Original reporting: KHQ Spokane (news) — read the source article.
