Company Accused of Violating Federal Securities Laws
Levin Law, P.A. (“Levin Law”), counsel in the filed class action against Lottery.com, is continuing its investigation into misrepresentations and unlawful actions taken by Lottery.com. The national securities firm is currently representing aggrieved investors who have sustained substantial losses as a result of the company’s wrongdoing.
Investors who suffered losses after purchasing or acquiring Lottery.com securities are encouraged to contact Levin Law for a free case evaluation. Harmed investors can call Levin Law founder and managing attorney Brian Levin directly at (305) 402-9050 or email contact@levinlawpa.com.
Lawsuits Against Lottery.com
Texas-based Lottery.com, Inc. F/K/A Trident Acquisitions Corp is facing multiple lawsuits after investors allege that the company violated numerous state and federal laws. The business-to-consumer (B2C) platform, which enabled consumers to remotely purchase lottery games, was formerly known as Trident Acquisitions Corp.
Founded in 2016, it completed a business combination with AutoLotto, Inc. in October 2021. AutoLotto subsequently changed its name to Lottery.com and began trading on the Nasdaq Stock Market.
In July 2022, the company disclosed on a Form 8-K filed with the U.S. Securities and Exchange Commission (SEC) that an internal investigation had uncovered “instances of non-compliance with state and federal laws.” Additionally, the investigation determined that there were issues with the company’s internal accounting controls and that financial statements should not be relied upon.
Fallout from the SEC Disclosures
Fallout from Lottery.com’s K-8 disclosures continues. Immediately after announcing what the internal investigation had uncovered, the Board voted to terminate the company’s CFO, President, and Treasurer. Lottery.com shares immediately fell over 12%. Shortly thereafter, the company’s CRO resigned.
Meanwhile, Lottery.com released an update stating that after reviewing its practices, the company had “overstated its available unrestricted cash balance by approximately $30 million” and had “improperly recognized revenue in the same amount.” Shares dropped an additional 14.5%. Further disclosures uncovered the deep financial trouble that the company was in. News of the turmoil caused shares to fall further, eventually declining to $0.29 per share on July 29, 2022.
Class Action Lawsuit Filed Against Lottery.com
In August 2022, Levin Law and other counsel filed a class action lawsuit against the online gambling company. Harmed investors have until October 18, 2022, to seek appointment as lead plaintiff in the lawsuit. The complaint alleges that Lottery.com made “materially false or misleading statements,” failed to disclose that they lacked adequate internal accounting and financial reporting controls, and violated state and federal laws.
The class action lawsuit was filed out of the Southern District of New York. Levin Law represents plaintiffs in the matter and was the first to formally file a complaint against the company for its alleged wrongdoings.
Contact Levin Law for a Free Case Evaluation
If you invested in Lottery.com, please contact managing attorney Brian Levin by visiting www.levinlawpa.com or calling (305) 402-9050. Aggrieved investors can also email contact@levinlawpa.com to schedule a free case evaluation.
Levin Law accepts most cases on a contingency-fee basis, meaning that you would not be obligated to pay Levin Law’s attorney fees unless money is recovered on your behalf.
About Levin Law
Levin Law is a premier national cryptocurrency, securities, commodities, futures, and class action law firm. Brian Levin, Levin Law’s founding attorney, has helped recover in excess of $150,000,000 through arbitration and litigation for individual and institutional investors throughout the country and the rest of the world. Levin Law represents retirees, individual investors, high-net-worth investors, ultra-high-net-worth investors, institutions, family offices, trusts, publicly held companies, and others.
