LOS ANGELES--(BUSINESS WIRE)--The Law Offices of Frank R. Cruz announces an investigation of Lottery.com Inc. f/k/a Trident Acquisitions Corp. (“Lottery.com” or the “Company”) (NASDAQ: LTRY) on behalf of investors concerning the Company’s possible violations of federal securities laws.
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On July 6, 2022, Lottery.com disclosed that an internal investigation had uncovered “instances of non-compliance with state and federal laws concerning the state in which tickets are procured as well as order fulfillment” and “issues pertaining to the Company’s internal accounting controls.” The Company also disclosed that it had terminated Ryan Dickinson, the Company’s President, Treasurer, and Chief Financial Officer.
On this news, Lottery.com’s stock price fell $0.15, or 12.3%, to close at $1.07 per share on July 6, 2022, thereby injuring investors.
Then, on July 15, 2022, after the markets closed, Lottery.com announced that its Chief Revenue Officer had resigned. The Company also reported that, after a review of its cash balances, its revenue recognition policies and procedures, and other internal accounting controls, it had “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.”
On this news, Lottery.com’s stock price fell $0.14, or 14.6%, to close at $0.82 per share on July 16, 2022, thereby injuring investors further.
Then, on July 29, 2022, the Company disclosed that it did not have “sufficient financial resources to fund its operations or pay certain existing obligations” and that it intended to furlough certain employees. The Company also stated that “there is substantial doubt about [its] ability to continue as a going concern” and it may be forced to wind down its operations or pursue liquidation of its assets.
On this news, Lottery.com’s stock price fell $0.52, or 64.2%, to close at $0.29 per share on July 29, 2022, thereby injuring investors further.
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If you purchased Lottery.com securities, have information or would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Frank R. Cruz, of The Law Offices of Frank R. Cruz, 1999 Avenue of the Stars, Suite 1100, Los Angeles, California 90067 at 310-914-5007, by email to info@frankcruzlaw.com, or visit our website at www.frankcruzlaw.com. If you inquire by email please include your mailing address, telephone number, and number of shares purchased.
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