Kentucky AG Blocks Kalshi's Bid to Move Case to Federal Court
Kentucky Attorney General Russell Coleman has responded to Kalshi's effort to move its case from state court to federal court, calling the request 'inappropriate.' In a brief filed on Monday, Coleman argued that Kalshi's contention that the Commodities Exchange Act preempts state law is not a valid argument for removal to federal court.
Coleman cited two cases, Grable & Sons Metal Prods., Inc. v. Darue Eng'g & Mf (2005) and Caterpillar Inc. v. Williams (1987), in support of his position. According to Coleman, these cases establish that a case cannot be removed to federal court based on a federal defense, including preemption, even if the parties concede that the defense is the only issue at stake.
The state of Kentucky has been suing Kalshi for allegedly engaging in 'false, misleading, and deceptive' advertising and marketing practices. Coleman argued that the complaint focuses on Kalshi's actions within Kentucky, making it a state issue rather than a federal one.