Kalshi Refer-a-Friend Text Lawsuit, Were You Texted Without Your Consent? Nicholas Brown v. Kalshi Inc., No. 2:26-cv-1426

Kalshi Inc. is facing a class action lawsuit — Nicholas Brown v. Kalshi Inc., No. 2:26-cv-1426 — filed in the U.S. District Court for the Western District of Washington, at Seattle, alleging the prediction market exchange sent unsolicited commercial text messages to Washington state residents without their knowledge or consent. If you live in Washington and received a text from someone pushing you to sign up for Kalshi, this case may directly affect you.

Kalshi Unsolicited Text Lawsuit — Key Facts

Field	Detail
Lawsuit Filed	April 28, 2026
Defendant	Kalshi Inc.
Alleged Harm	Unsolicited commercial text messages sent without consent
Specific Law Alleged	Washington Commercial Electronic Mail Act (CEMA)
Who Is Affected	Washington state residents who received a Kalshi refer-a-friend text without giving consent
Court & Case Number	U.S. District Court, Western District of Washington (Seattle) — No. 2:26-cv-1426
Current Court Stage	Newly filed — class certification pending
Lead Plaintiff Deadline	TBD — not yet set by the court
Settlement Status	No settlement reached — active litigation
Law Firms Involved	Maze Law Group PLLC, Kothari Law, Wade Grunberg & Wilson LLC
Last Updated	May 27, 2026

Who Is Kalshi and Why Are They Facing an Unsolicited Text Lawsuit?

Kalshi is a nationwide prediction market that allows users to buy and sell event contracts based on the outcome of various events. The company operates across the United States and is regulated at the federal level by the Commodity Futures Trading Commission (CFTC) as a designated contract market. This texting lawsuit is separate from Kalshi’s other regulatory fights — it zeroes in on how the company grew its user base by sending promotional texts to Washington residents who never asked to hear from them.

What Did Kalshi Do to Washington Residents Through Its Refer-a-Friend Program?

The 18-page lawsuit contends that Kalshi violated the Washington Commercial Electronic Mail Act (CEMA) by enabling its users to act as agents on its behalf to send promotional texts containing sign-up links and offering rewards without obtaining a recipient’s consent.

Here is how it worked. Kalshi sought to grow its user base by incentivizing existing accountholders to invite their friends to join the platform with the promise of $10 to $25 awards that can be used for trading on Kalshi. Kalshi provided “substantial assistance” to existing users in composing and sending its refer-a-friend text messages by offering copy-and-paste features, generating invitation links, and directing users to send messages.

The lawsuit argues that even though individual users hit “send,” Kalshi wrote the message, built the link, set up the financial reward, and directed the whole process. Brown argues that users who send these refer-a-friend text messages act as Kalshi’s agents — and that Kalshi pays them referral bonuses for doing so. Law360 reported on April 28, 2026 that Kalshi has become the latest company to be hit with a lawsuit in Washington federal court over refer-a-friend texts that recipients say violate the state’s Commercial Electronic Mail Act.

This is not the first time a fintech company has faced this exact legal theory in Washington. The Cash App CEMA refer-a-friend lawsuit — which followed nearly identical allegations — shows how Washington’s CEMA law applies to referral programs run by major fintech platforms. Washington’s CEMA imposes a $500 penalty per illegal text — payable directly to the consumer — making these cases financially significant for people who received even a single unwanted message. For more on how unauthorized text lawsuits work under federal and state law, the Lendbee unauthorized text message class action breaks down what companies owe consumers when they skip consent.

Related article: Subaru Electrical System Defect Parasitic Battery Drain Lawsuit, Were You Left Stranded by a Dead Battery? Taylor, et al. v. Subaru of America, Inc., et al., No. 2:26-cv-04935

Are You Part of the Kalshi Refer-a-Friend Text Class Action?

Tell the reader upfront: here is exactly how to know if this case includes you.

You may be part of this lawsuit if:

• You are a Washington state resident who received a Kalshi “Refer a Friend” text message
• The text came from someone in your contacts promoting Kalshi with a sign-up link
• You never gave Kalshi clear and affirmative consent to send you commercial messages
• You received the text without having given clear and affirmative advance consent

You are likely not included if:

• You live outside Washington state
• You received the text after already signing up for Kalshi and consenting to marketing
• You contacted Kalshi first and requested information about the platform

Kalshi Affected Washington Residents Outside Seattle — Are You Still Covered?

Yes. This is a federal case filed in the Western District of Washington. Federal cases cover residents statewide, not just those in Seattle or King County. If you are anywhere in Washington and received an unsolicited Kalshi referral text, you are potentially included regardless of your city.

If you are unsure whether you qualify for the Kalshi unsolicited text lawsuit, a free consultation with a consumer rights attorney can help you assess your situation before any deadlines are set by the court.

What Are Kalshi Refer-a-Friend Text Recipients Asking the Court to Award?

No money is available yet. No claim form exists. This is an active lawsuit in its early stage.

That said, the legal basis matters here. Washington’s CEMA prohibits sending unsolicited advertising texts and imposes a $500 penalty — payable to consumers — per text. The plaintiffs contend that this violates both the Washington Consumer Protection Act and the Washington Commercial Electronic Mail Act (CEMA), which regulates unsolicited commercial messaging.

What Could Kalshi Text Recipients Receive If the Case Settles?

The $500-per-text statutory damages figure under CEMA is the starting point. How much any individual actually recovers depends on the number of class members, the strength of evidence, and what the parties negotiate. In 2024, Robinhood paid $9 million to settle a class action lawsuit for a similar alleged violation. That gives you a real-world benchmark, but every case is different and no outcome is guaranteed. Speak with a consumer rights attorney to understand what your specific situation could be worth.

What Should Washington State Kalshi Text Recipients Do Right Now?

1. You do not need to file anything today. Most class members are automatically included if the class is certified. No action is required right now to preserve your place.
   
2. Save the text. Screenshot the Kalshi referral text you received. Note the date it arrived and who sent it. This documentation could become important later.
   
3. Save any related messages. If you received multiple Kalshi referral texts, save all of them. Each one could count as a separate violation under CEMA.
   
4. Watch for a lead plaintiff deadline. The court has not set one yet. If you received a large number of these texts and want to be considered as a lead plaintiff, consult an attorney soon — lead plaintiff applicants often need to move quickly once the court opens that process.
   
5. Monitor the docket. You can follow case filings at PACER under No. 2:26-cv-1426 in the U.S. District Court for the Western District of Washington.
   
6. Consider an individual claim. If your losses or harm are significant, a consumer rights attorney can advise whether an individual claim makes more sense than staying in the class.

Kalshi Unsolicited Text Lawsuit Timeline

Milestone	Date
Kalshi refer-a-friend program begins operating	TBD — prior to lawsuit filing
Lawsuit filed by plaintiff Nicholas Brown	April 28, 2026
Case assigned — Western District of Washington, Seattle	April 28, 2026
Lead plaintiff deadline	TBD — not yet set by court
Class certification hearing	TBD — not yet scheduled
Expected resolution	TBD — early litigation stage

Kalshi Unsolicited Text Lawsuit — Frequently Asked Questions, No. 2:26-cv-1426

Is there a class action lawsuit against Kalshi for sending unsolicited referral texts right now?

 Yes. Plaintiff Nicholas Brown filed a class action lawsuit against Kalshi Inc. in the U.S. District Court for the Western District of Washington, at Seattle, as case No. 2:26-cv-1426. The case was filed on April 28, 2026 and is in early litigation.

Do I need to do anything right now to be included in the Kalshi text message class action? 

No immediate action is required for most Washington residents. Brown wants to represent a class of all Washington residents who received a Kalshi “Refer a Friend” text message without having given clear and affirmative advance consent. If that describes you, you are likely already a potential class member. Save your text records and wait for court updates.

What law does Kalshi allegedly violate in this lawsuit? 

The lawsuit alleges violations of the Washington Commercial Electronic Mail Act (CEMA) and the Washington Consumer Protection Act. CEMA prohibits sending unsolicited advertising texts and imposes a $500 penalty — payable to consumers — per text.

When will the Kalshi refer-a-friend text case settle? 

There is no settlement yet and no timeline has been set by the court. Cases like this typically take one to three years to reach resolution. The Cash App CEMA case — nearly identical in structure — took roughly two years from filing to final settlement approval.

Can I file my own lawsuit against Kalshi for the unsolicited texts instead of joining the class?

 Yes, you can pursue an individual claim. Whether that is better than staying in the class depends on how many texts you received and your specific circumstances. A consumer rights attorney can help you weigh that decision.

How will I find out if the Kalshi lawsuit settles?

 Brown claims Kalshi maintains records showing which phone numbers received the referral texts. If a settlement is reached, those records are typically used to notify class members directly by mail or email. You can also monitor PACER at case No. 2:26-cv-1426.

How much could Washington residents receive from a future Kalshi CEMA settlement? 

No money is available yet. If the case settles under CEMA, the statutory starting point is $500 per violation per text message. Real-world recoveries vary widely based on the number of claimants and how the settlement fund is structured. Robinhood paid $9 million in a similar Washington CEMA refer-a-friend case. Consult a consumer rights attorney to discuss your individual situation.

Are other fintech companies facing similar Washington CEMA lawsuits? 

Yes. A Washington resident has also accused MoneyLion, a fintech company, of sending referral text messages without obtaining clear and affirmative consent in violation of Washington’s CEMA. This is a growing trend targeting platforms that use refer-a-friend programs to grow their user bases without securing consent from the recipients.

Sources

• Law360 — Kalshi Hit With Refer-A-Friend Text Suit in Wash., April 28, 2026: https://www.law360.com/articles/2471012

This article is for informational purposes only and does not constitute legal advice. Consult a qualified attorney for advice about your specific situation.

Prepared by the AllAboutLawyer.com Editorial Team and reviewed for factual accuracy against Law360 and court filings on May 27, 2026. Last Updated: May 27, 2026.