Class Action Filed: Lottery.com Inc.
BERGER MONTAGUE PC FILES CLASS ACTION TO RECOVER LOSSES FOR INVESTORS WHO PURCHASED LOTTERY.COM, INC. SECURITIES (NASDAQ: LTRY)
PHILADELPHIA, August 19, 2022 – Berger Montague has filed a class action lawsuit in the United States District Court for the Southern District of New York on behalf of investors who purchased the securities of Lottery.com, Inc. (“Lottery.com” or the “Company”) (NASDAQ: LTRY) between November 15, 2021 and July 29, 2022 (the “Class Period”).
The complaint alleges that Lottery.com and members of senior management violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder by the Securities and Exchange Commission.
If you are a member of the proposed Class, you may move the court no later than 60 days from the date of this notice to serve as a lead plaintiff for the proposed Class. You need not seek to become a lead plaintiff in order to share in any possible recovery.
If you suffered losses, would like to discuss Berger Montague’s lawsuit, or have questions concerning your rights or interests, please contact attorneys Andrew Abramowitz at [email protected] or (215) 875-3015, or Michael Dell’Angelo at [email protected] or (215) 875-3080 or visit: https://www.lotterydotcomclassaction.com/
NO CLASS HAS YET BEEN CERTIFIED IN THE ABOVE ACTION. UNTIL A CLASS IS CERTIFIED, YOU ARE NOT REPRESENTED BY COUNSEL UNLESS YOU RETAIN ONE. YOU MAY RETAIN COUNSEL OF YOUR CHOICE. YOU MAY ALSO REMAIN AN ABSENT CLASS MEMBER AND DO NOTHING AT THIS POINT. AN INVESTOR’S ABILITY TO SHARE IN ANY POTENTIAL FUTURE RECOVERY IS NOT DEPENDENT UPON SERVING AS LEAD PLAINTIFF.
According to the lawsuit, throughout the Class Period, Defendants made materially false or misleading statements and/or failed to disclose material information. A series of disclosures beginning on July 6, 2022 revealed that Lottery.com and its senior management failed to disclosure that, inter alia: (i) the Company lacked adequate internal accounting controls; (ii) the Company lacked adequate internal controls over financial reporting, including but not limited to those 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.
Finally, on July 29, 2022, in a Form 8-K filed with the SEC, Defendants informed the market 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 twelve-month period, “there is substantial doubt about the Company’s ability to continue as a going concern,” and the Company may be forced to wind down its operations or pursue liquidation of the Company’s assets.
In reaction to this news, shares of Lottery.com lost 64% of their value in a single trading day, falling $0.52 per share, from a closing price of $0.81 per share on July 28, 2022 to a close of $0.29 per share on July 29, 2022.