NEW YORK--(BUSINESS WIRE)--The law firm of Kirby McInerney LLP announces that a class action lawsuit has been filed in the U.S. District Court for the Southern District of New York on behalf of those who acquired Lottery.com, Inc. (“Lottery.com” or the “Company”) (NASDAQ: LTRY) securities from November 15, 2021 through July 29, 2022, both dates inclusive (the “Class Period”). Investors have until October 18, 2022 to apply to the Court to be appointed as lead plaintiff in the lawsuit.
Lottery.com operates as a lottery service company. As an independent third-party lottery game service, it develops and operates a platform which enables the remote purchase of legally sanctioned lottery games.
On July 29, 2022, in a Form 8-K filed with the SEC, the Company 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. On this news, the price of Lottery.com shares declined by $0.52 per share, or approximately 64.2%, from $0.81 per share to close at $0.29 on July 29, 2022.
The lawsuit alleges that, throughout the Class Period, Defendants made false and/or misleading statements and/or failed to disclose that, inter alia: (1) the Company lacked adequate internal accounting controls; (2) the Company lacked adequate internal controls over financial reporting, including but not limited to those pertaining to revenue recognition and the reporting of cash; (3) the Company was not in compliance with state and federal laws governing the sale of lottery tickets; and (4) as a result, the Company's public statements were materially false and misleading at all relevant times.
If you purchased or otherwise acquired Lottery.com securities, have information, or would like to learn more about these claims, please contact Thomas W. Elrod of Kirby McInerney LLP by email at investigations@kmllp.com, or by filling out this contact form, to discuss your rights or interests with respect to these matters without any cost to you.
Kirby McInerney LLP is a New York-based plaintiffs’ law firm concentrating in securities, antitrust, whistleblower, and consumer litigation. The firm’s efforts on behalf of shareholders in securities litigation have resulted in recoveries totaling billions of dollars. Additional information about the firm can be found at Kirby McInerney LLP’s website: http://www.kmllp.com.
This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.
