Kalshi Hit With Class Action Over Iran Supreme Leader Prediction Market Payout Terms

Prediction platform Kalshi is facing a class action filed in the US District Court for the Central District of California over how it settled a market on whether Iran's Supreme Leader Ali Khamenei would leave office by March 1. Plaintiffs say a "death carveout" rule applied after reports of Khamenei's death on Feb. 28 led to partial payouts based on the final traded price instead of the full $1 per winning contract, while Kalshi argues the clause was meant to stop users from profiting directly from a person's death and later reimbursed fees and net losses.