Lottery.com Inc.

Investigation
07/06/2022

Initial Lawsuit
08/19/2022

Lawsuit Progression
10/18/2022

Investigation

Continous Holding
November 15, 2021 to July 29, 2022
Proposed Claim
Securities Violation

Did Lottery.com Inc. mislead its investors regarding its internal controls over financial reporting on revenue recognition and the reporting of cash?

This post is open for investors to gather facts, and findings and track their exposure to related lawsuits. We invite investors and shareholders to contribute to this investigation for their own benefit, add events to the factual timeline below and vote on events’ pertinence.

A lawsuit was subsequently filed. We update this post regularly.

Main Event

No Available Fund

07/29/2022

SEC Filing

Lottery.com determines that it does not have sufficient financial resources to fund its operations or pay certain existing obligations, including its payroll and related obligations.

“Accordingly, the Company intends to furlough certain employees effective July 29, 2022. As of July 29, 2022, the Company owed approximately $425,000 in outstanding payroll obligations. The Company’s inability to pay this amount may result in employees terminating their relationship with the Company and/or pursuing legal remedies . . .

Additionally, the Company’s capital resources are not sufficient to fund its operations for a twelve-month period and, therefore, there is substantial doubt about the Company’s ability to continue as a going concern. If the Company is not able to secure additional capital resources or otherwise fund its operations, the Company will be forced to wind down some or all of its operations and pursue options for liquidating the Company’s assets, including equipment and intellectual property.”

The stock impact compares the closing price immediately preceding the date of the event and the following closing price. The price difference also reflects the overall mix of information.

Stock Impact

Close	Previous close	Price variation	Percentage variation
$0.29	$0.81	$-0.52	-64.2%

See more on Factual Timeline

Initial Lawsuit

First Complaint - 08/19/2022

A Lottery.com Inc. (LTRY) shareholder filed a federal securities class action lawsuit on behalf of a class consisting of all persons and entities other than the defendants that purchased or otherwise acquired Lottery.com securities between November 15, 2021, and July 29, 2022, both dates inclusive.

Filing Date
08/19/2022
Class Period
11/15/2021 to 07/29/2022
Transgression
Securities Violation
Filing Firms
Berger Montague PC
Kirby McInerney LLP
Levin Law, P.A.
Case Title
Million v. Lottery.com, Inc. et al
Docket Number
1:22-cv-07111
Court
New York Southern District Court
Free File
Complaint

Allegations

According to the complaint, defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the company’s business, operations, and prospects. Specifically, defendants allegedly failed to disclose to investors that:

(i) the company lacked adequate internal accounting controls;
(ii) the company lacked adequate internal controls over financial reporting pertaining to revenue recognition and the reporting of cash;
(iii) the company was not in compliance with state and federal laws governing the sale of lottery tickets; and
(iv) as a result, the company’s public statements were materially false and misleading at all relevant times.