NOTICE TO INVESTORS: Investors in Lottery.com, Inc. f/k/a Trident Acquisitions Corp. with substantial losses have the opportunity to pursue the class action Lottery.com – LTRY; LTRYW
SAN DIEGO–(BUSINESS WIRE)–The law firm Robbins Geller Rudman & Dowd LLP announces that purchasers or acquirers of securities of Lottery.com, Inc. f/k/a Trident Acquisitions Corp. (NASDAQ: LTRY; LTRYW) between November 15, 2021 and July 29, 2022 inclusive (the “Class Period”) have until October 18, 2022 to seek appointment as lead plaintiff. Subtitle million v. Lottery.com, Inc. f/k/a Trident Acquisitions Corp.no. 22-cv-07111 (SDNY), the lottery.com The class action accuses Lottery.com and some of its top executives of violating the Securities Exchange Act of 1934.
If you have suffered substantial losses and wish to act as the lead plaintiff of the lottery.com class action, please provide your information here:
CASE ALLEGATIONS: Lottery.com is a technology company that operates a business-to-consumer platform that allows players to remotely purchase legally sanctioned lottery games in the United States and around the world. On October 29, 2021, Trident Acquisitions Corp. – a special purpose acquisition vehicle, known as SPAC or Blank Check Company – entered into a business combination with AutoLotto, Inc., which since its inception in 2015 has been doing business as from Lottery.com. Following the closing of the business combination, AutoLotto changed its name to Lottery.com.
The lottery.com The class action alleges that the defendants made materially false or misleading statements and/or failed to disclose, among other things, that: (i) Lottery.com did not have adequate internal accounting controls; (ii) Lottery.com did not have adequate internal controls over financial reporting, including but not limited to those relating to revenue recognition and cash reporting; 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 regarding the state in which tickets are purchased as well as the execution of orders”. The investigation also revealed “issues with 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 President, Treasurer and Chief Financial Officer, Defendant Ryan Dickinson. At this news, Lottery.com’s share price fell more than 12%.
Then, on July 15, 2022, Lottery.com announced that its defendant, Chief Revenue Officer Matthew Clemenson, had resigned. Lottery.com also revealed that it had “preliminarily concluded[d] that it overstated its unrestricted free cash balance by approximately $30 million and that, relatedly, in the prior year, it incorrectly recorded revenue of the same amount” and that Lottery.com “ in consultation with its external advisors, is currently validating its preliminary conclusion, assessing any impact on previously published financial reports, and has begun to put in place appropriate corrective measures. At this news, Lottery.com’s share price fell another 14.5%.
Subsequently, on July 22, 2022, Lottery.com disclosed that it had been advised by its independent accountant that its audited financial statements for the year ended December 31, 2021 and its unaudited financial statements for the quarter ended December 31, March 2022 should no longer be invoked. Additionally, Lottery.com reported that defendant CEO and co-founder Anthony DiMatteo is stepping down, effective immediately. As a result of 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 therefore intended to lay off some employees effective July 29. July 2022. Additionally, 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 its activities” and Lottery.com may be forced to terminate its operations or continue to liquidate its assets. At this news, Lottery.com’s share price fell about 64%, further hurting investors.
Robbins Geller launched a dedicated SPAC working group to protect investors in blank check companies and seek redress for corporate wrongdoing. Comprised of experienced litigators, investigators and forensic accountants, the SPAC Task Force is dedicated to rooting out and prosecuting fraud on behalf of aggrieved SPAC investors. The rise of blank check funding presents unique risks for investors. Robbins Geller’s SPAC Task Force represents the forefront of ensuring integrity, honesty and fairness in this rapidly developing area of investment.
THE PRINCIPAL APPLICANT 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 a lead plaintiff. A principal plaintiff is generally the plaintiff with the greatest financial interest in the relief sought by the putative class that is also typical and adequate of the putative class. A lead plaintiff acts on behalf of all other class members by directing the lottery.com class action. The main plaintiff can select a law firm of his choice to plead lottery.com class action. An investor’s ability to participate in any potential future takeover does not depend on its status as the lead claimant of the lottery.com class action.
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 No. 1 in 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 firm from plaintiffs. With 200 attorneys in 9 offices, Robbins Geller is one of the largest plaintiffs firms in the world, and the firm’s attorneys have secured many of the largest securities class action recoveries in history, including the most largest ever-recorded securities class action recovery – $7.2 billion – in In re Enron Corp. Dry. Litigation Please visit the following page for more information:
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