Case 2:25-cv-01541-JCM-DJA Document 1 Filed 08/19/25 Page 23 of 26
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goodwill, once lost, cannot easily or quickly be regained, even if Robinhood ultimately prevails in litigation, and the risk to goodwill therefore also constitutes irreparable harm. KalshiEx , 2025 WL 1073495, at *7; see also Life Alert , 601 F. App’x at 474 (citing Stuhlbarg Int’l Sales Co. , 240 F.3d at 841) (holding that company was entitled to preliminary injunction due to “the threat to [its] reputation and goodwill,” which “is not readily compensable”). 69. Nor could Robinhood have avoided irreparable harm by continuing voluntarily to comply with the Board’s cease-and-desist demand to Kalshi and letter to Robinhood. Had it continued to comply, Robinhood would have been forced to continue to forgo significant business in Nevada, resulting in loss of revenue. These economic losses would be unrecoverable because sovereign immunity bars Robinhood from obtaining monetary damages for the Board’s impact on Robinhood’s business. See Alden v. Maine , 527 U.S. 706, 712-13 (1999). Damages that are unrecoverable due to sovereign immunity constitute irreparable harm. See, e.g. , Idaho v. Coeur d’Alene Tribe , 794 F.3d 1039, 1046 (9th Cir. 2015) (plaintiff state would suffer irreparable harm without a preliminary injunction because “the [defendant] Tribe’s sovereign immunity likely would bar the State from recovering monetary damages”); Grondal v. United States , No. 2:09-CV-18-RMP, 2020 WL 13388646, at *5 (E.D. Wash. Aug. 20, 2020) (“[F]inancial harm can constitute irreparable injury in the context of preliminary injunctions when the money lost cannot be recovered later due to sovereign immunity.”). 70. Continuing to prevent Nevada residents from opening sports-related event contract positions would also have undermined customers’ confidence in Robinhood and their reliance on its financial services, causing irreparable harm. KalshiEx , 2025 WL 1073495, at *7; see also Life Alert , 601 F. App’x at 474. 71. Given the Board’s demand that Robinhood comply with preempted state law, Robinhood had and has no way to avoid irreparable harm in the absence of a temporary restraining order and preliminary injunction.
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