Kalshi Sued Over Khamenei Prediction Market Carveout

A class action lawsuit has been filed against prediction market Kalshi, alleging the death carveout in the “Ali Khamenei out as Supreme Leader” market was not properly disclosed and that the platform failed to pay out winning trades. Plaintiffs say the carveout policy was “not incorporated into the user-facing rules summary,” and was not displayed in a way that would notify a “reasonable consumer” of the policy or its effects.

The filing notes defendants later acknowledged their prior disclosures were “grammatically ambiguous.” Kalshi voided trading positions after the former Iranian Supreme Leader’s death was confirmed, so the market did not resolve to a “yes.” Kalshi co-founder Tarek Mansour says the platform avoids markets directly tied to death and designs rules to prevent people from profiting from death: “We don’t list markets directly tied to death.

kalshi, prediction markets, ali khamenei, death carveout, class action, payouts, user rules, tarek mansour, voided trades, supreme leader