Robbins Geller Rudman & Dowd LLP announces that purchasers or acquirers of Lottery.com, Inc. f/k/a Trident Acquisitions Corp. (NASDAQ: LTRY; LTRYW) securities between November 15, 2021 and July 29, 2022, inclusive (the “Class Period”) have until October 18, 2022 to seek appointment as lead plaintiff. The Lottery.com class action lawsuit – captioned Million v. Lottery.com, Inc. f/k/a Trident Acquisitions Corp., No. 22-cv-07111 (S.D.N.Y.) – charges Lottery.com and certain of its top executive officers with violations of the Securities Exchange Act of 1934.
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CASE ALLEGATIONS: Lottery.com is a technology company that operates a business-to-consumer platform enabling players to remotely purchase legally sanctioned lottery games in the United States and internationally. On October 29, 2021, Trident Acquisitions Corp. – a special purpose acquisition vehicle, known as SPAC or blank check company – consummated a business combination with AutoLotto, Inc., which, since its founding in 2015, conducted business as Lottery.com. Following the closing of the business combination, AutoLotto changed its name to Lottery.com.
The Lottery.com class action lawsuit alleges that defendants made materially false or misleading statements and/or failed to disclose, among other things, that: (i) Lottery.com lacked adequate internal accounting controls; (ii) Lottery.com lacked adequate internal controls over financial reporting, including, but not limited to, those pertaining to revenue recognition and the reporting of cash; and (iii) Lottery.com was not in compliance with state and federal laws governing the sale of lottery tickets.
On July 6, 2022, Lottery.com disclosed that an internal investigation, conducted by independent counsel, had uncovered “instances of non-compliance with state and federal laws concerning the state in which tickets are procured as well as order fulfillment.” The investigation also revealed “issues pertaining to the Company’s internal accounting controls.” Lottery.com further disclosed that, in light of the findings of the independent investigation, on June 30, 2022, the Board of Directors terminated Lottery.com’s President, Treasurer, and Chief Financial Officer defendant Ryan Dickinson. On this news, Lottery.com’s stock price fell by more than 12%.
Then, on July 15, 2022, Lottery.com announced that its Chief Revenue Officer defendant Matthew Clemenson had resigned. Lottery.com also revealed that it had “preliminarily conclude[d] that it has overstated its available unrestricted cash balance by approximately $30 million and that, relatedly, in the prior fiscal year, it improperly recognized revenue in the same amount” and that Lottery.com “in consultation with its outside advisors, is currently validating its preliminary conclusion, assessing any impact on previously issued financial reports, and has begun to institute appropriate remedial measures.” On this news, Lottery.com’s stock price fell an additional 14.5%.
Thereafter, on July 22, 2022, Lottery.com disclosed that it had been advised by its independent accountant that its audited financial statements for the fiscal year ended December 31, 2021 and unaudited financial statements for the quarter ended March 31, 2022 should no longer be relied upon. In addition, Lottery.com reported that CEO and co-founder defendant Anthony DiMatteo was resigning, effective immediately. On this news, Lottery.com’s stock price fell approximately 12% over the next two trading days.
Finally, on July 29, 2022, Lottery.com disclosed that it did not have “sufficient financial resources to fund its operations or pay certain existing obligations,” and that it therefore intended to furlough certain employees effective July 29, 2022. Moreover, because Lottery.com’s resources were not sufficient to fund its operations for a 12-month period, it disclosed that “there is substantial doubt about the Company’s ability to continue as a going concern” and Lottery.com may be forced to wind down its operations or pursue liquidation of its assets. On this news, Lottery.com’s stock price fell approximately 64%, further damaging investors.
Robbins Geller has launched a dedicated SPAC Task Force to protect investors in blank check companies and seek redress for corporate malfeasance. Comprised of experienced litigators, investigators, and forensic accountants, the SPAC Task Force is dedicated to rooting out and prosecuting fraud on behalf of injured SPAC investors. The rise in blank check financing poses unique risks to investors. Robbins Geller’s SPAC Task Force represents the vanguard of ensuring integrity, honesty, and justice in this rapidly developing investment arena.
THE LEAD PLAINTIFF PROCESS: The Private Securities Litigation Reform Act of 1995 permits any investor who purchased or acquired Lottery.com securities during the Class Period to seek appointment as lead plaintiff. A lead plaintiff is generally the movant with the greatest financial interest in the relief sought by the putative class who is also typical and adequate of the putative class. A lead plaintiff acts on behalf of all other class members in directing the Lottery.com class action lawsuit. The lead plaintiff can select a law firm of its choice to litigate the Lottery.com class action lawsuit. An investor’s ability to share in any potential future recovery is not dependent upon serving as lead plaintiff of the Lottery.com class action lawsuit.
ABOUT ROBBINS GELLER: Robbins Geller is one of the world’s leading complex class action firms representing plaintiffs in securities fraud cases. The Firm is ranked #1 on the 2021 ISS Securities Class Action Services Top 50 Report for recovering nearly $2 billion for investors last year alone – more than triple the amount recovered by any other plaintiffs’ firm. With 200 lawyers in 9 offices, Robbins Geller is one of the largest plaintiffs’ firms in the world and the Firm’s attorneys have obtained many of the largest securities class action recoveries in history, including the largest securities class action recovery ever – $7.2 billion – in In re Enron Corp. Sec. Litig. Please visit the following page for more information:
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J.C. Sanchez, 800-449-4900