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LTRY.US
id: 125
S.D. New York
Court
On July 6, 2022, Lottery.com disclosed that an internal investigation, conducted by independent counsel, had uncovered “instances of noncompliance with state and federal laws concerning the state in which tickets are procured as well as order fulfillment.” In addition, the investigation revealed “issues about the Company’s internal accounting controls.” The report also disclosed that, in light of the findings of the independent investigation, on June 30, 2022, the Board terminated the Company’s President, Treasurer, and CFO Ryan Dickinson.
On this news, Lottery.com’s shares fell more than 12% to a closing price of $1.07 per share on July 6, 2022.
On July 15, 2022, in a Form 8-K filed with the SEC, Lottery.com announced that Chief Revenue Officer Matthew Clemenson had resigned. Moreover, the Company reported that, after a review of its cash balances, its revenue recognition policies and procedures, and other internal accounting controls, Lottery.com had: preliminarily concluded 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. The Company, 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, shares of Lottery.com fell more than 14.5% to a closing price of $0.82 per share on July 16, 2022.
The Company made a series of additional adverse disclosures before finally, on July 29, 2022, informing the market that it did not have “sufficient financial resources to fund its operations or pay certain existing obligations.” Moreover, because Lottery.com’s resources were not sufficient to fund its operations for twelve months, "the Company may be forced to wind down its operations or pursue the liquidation of the Company’s assets.
On this news, shares of Lottery.com plunged 64% to a close of $0.29 per share on July 29, 2022.
Alleged Offence
Misleading Statements
Financial Misrepresentation
Failure to Disclose
Malpractice
Negligence
Breach of Fiduciary duty
Omissions
Suspected Party
Directors
Management
Service Provider
Security Type
Stocks
Trade Direction
Long
Shock Event Date
29 July 2022
Collecting participants…

Lottery.com Inc

Lottery.com Inc., a digital publisher, provides lottery data results, jackpots, results, and other data. It delivers daily results of approximately 800 domestic and international lottery games from...

    Ticker
    LTRY.US
    ISIN
    US54570M1080
    CIK
    1673481
    Sector
    Consumer Cyclical
    Industry
    Gambling
    Country
    USA
    Address
    20808 State Highway 71 West, Spicewood, TX, United States, 78669