LOS ANGELES--(BUSINESS WIRE)--The Law Offices of Frank R. Cruz announces that a class action lawsuit has been filed on behalf of persons and entities that purchased or otherwise acquired Lottery.com Inc. f/k/a Trident Acquisitions Corp. (“Lottery.com” or the “Company”) (NASDAQ: LTRY) securities between November 15, 2021 and July 29, 2022, inclusive (the “Class Period”). Lottery.com investors have until October 18, 2022 to file a lead plaintiff motion.
If you are a shareholder who suffered a loss, click here to participate.
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.
The complaint filed in this class action alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors that: (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, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis at all relevant times.
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If you purchased Lottery.com securities during the Class Period, you may move the Court no later than October 18, 2022 to ask the Court to appoint you as lead plaintiff. To be a member of the Class you need not take any action at this time; you may retain counsel of your choice or take no action and remain an absent member of the Class. 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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