Event cameras have the potential to revolutionize vision systems with their high temporal resolution and dynamic range, yet they remain susceptible to lens flare, a fundamental optical artifact that causes severe degradation. In event streams, this optical artifact forms a complex, spatio-temporal distortion that has been largely overlooked. We present E-Deflare, the first systematic framework for removing lens flare from event camera data. We first establish the theoretical foundation by deriving a physics-grounded forward model of the non-linear suppression mechanism. This insight enables the creation of the E-Deflare Benchmark, a comprehensive resource featuring a large-scale simulated training set, E-Flare-2.7K, and the first-ever paired real-world test set, E-Flare-R, captured by our novel optical system. Empowered by this benchmark, we design E-DeflareNet, which achieves state-of-the-art restoration performance. Extensive experiments validate our approach and demonstrate clear benefits for downstream tasks. Code and datasets are publicly available.