SAN DIEGO–(BUSINESS WIRE)–Robbins Geller Rudman & Dowd LLP announces that it has filed a class action lawsuit seeking to represent purchasers or acquirers of Lottery.com, Inc. f/k/a Trident Acquisitions Corp. (NASDAQ: LTRY; LTRYW; TDAC; TDACW; TDACU) publicly traded securities between November 19 , 2020 and July 29, 2022, inclusive (the “Class Period”). Captioned McDonald v. Lottery.com, Inc. f/k/a Trident Acquisitions Corp.No. 22-cv-1025 (WD Tex.), the Lottery.com class action lawsuit charges Lottery.com and certain of its top executive officers with violations of the Securities Exchange Act of 1934. Two substantially similar complaints are also pending – Million v. Lottery.com, Inc. f/k/a Trident Acquisitions Corp.No. 22-cv-07111 (SDNY), and Rogers v. Lottery.com, Inc. f/k/a Trident Acquisitions Corp.No. 22-cv-00907 (WD Tex.).
If you suffered substantial losses and wish to serve as lead plaintiff of the Lottery.com class action lawsuit, please provide your information here:
You can also contact attorney JC Sanchez. of Robbins Geller by calling 800/449-4900 or via e-mail at [email protected] Lead plaintiff motions for the Lottery.com class action lawsuit must be filed with the court no later than October 18, 2022.
CASE ALLEGATIONS: Lottery.com is a provider of domestic and international lottery products and services that enable consumers and businesses to purchase purportedly legally sanctioned lottery tickets in the United States and abroad online. On November 19, 2020, Trident Acquisitions Corp. – a special purpose acquisition vehicle, known as SPAC or blank check company – announced that it had signed a letter of intent to combine with Lottery.com, which was then a private company.
The Lottery.com class action lawsuit alleges that defendants made materially false or misleading statements and/or failed to disclose, among other things, that: (i) Lottery.com was not in compliance with state and federal laws governing the sale of lottery tickets; (ii) Lottery.com lacked adequate internal accounting controls; (iii) Lottery.com lacked adequate internal controls over financial reporting, including, but not limited to, those pertaining to revenue recognition and the reporting of cash; and (iv) as a result of the foregoing, defendants’ positive statements about Lottery.com’s business, operations, growth, and prospects were materially misleading and/or lacked on a reasonable basis.
On November 15, 2021, Lottery.com announced that the Board of Directors had approved the engagement of Armanino LLP as Lottery.com’s independent registered public accounting firm to audit Lottery.com’s consolidated financial statements for the year ended December 31, 2021, and the dismissal of Marcum LLP as its auditing firm. Lottery.com further disclosed that “[i]n connection with the preparation of [Lottery.com]’s financial statements as of September 30, 2021, management identified errors made in its historical financial statements where, at the closing of [Lottery.com’s] Initial Public Offering, [Lottery.com] improperly valued its common stock subject to possible redemption.” Lottery.com’s quarterly report on Form 10-Q filed that day also referenced the fact that Lottery.com had identified a material weakness and determined that its disclosure controls and procedures were not effective as of September 30, 2021. On this news, Lottery. com’s stock price fell nearly 50%.
Then, 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 concerning the state in which tickets are procured as well as order fulfillment.” The investigation also revealed “issues pertaining to [Lottery.com’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’s President, Treasurer, and Chief Financial Officer defendant Ryan Dickinson. On this news, Lottery.com’s stock price fell by more than 12%.
Thereafter, on July 15, 2022, Lottery.com announced that its Chief Revenue Officer defendant Matthew Clemenson had resigned. Lottery.com also revealed that it had “preliminarily concluded[d] that it has 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” and that Lottery.com “in consultation with its outside advisors, is currently validating its preliminary conclusion, assessing any impact on previously issued financial reports, and has begun to institute appropriate remedial measures.” On this news, Lottery.com’s stock price fell an additional 14.5%.
Next, on July 22, 2022, Lottery.com disclosed that it had been advised by its independent accountant that its audited financial statements for the fiscal year ended December 31, 2021 and unaudited financial statements for the quarter ended March 31, 2022 should no longer. be relied upon. In addition, Lottery.com reported that CEO and co-founder defendant Anthony DiMatteo was resigning, effective immediately. On 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 that it therefore intended to furlough certain employees effective July 29, 2022. Lottery.com’s resources were not sufficient to fund its operations for a 12-month period, it disclosed that “there is substantial doubt about [Lottery.com’s] ability to continue as a going concern” and Lottery.com may be forced to wind down its operations or pursue liquidation of its assets. On this news, Lottery.com’s stock price fell approximately 64%, further damaging investors.
The plaintiff is represented by Robbins Geller, which has extensive experience in prosecuting investor class actions including actions involving financial fraud. You can view a copy of the complaint by clicking here.
Robbins Geller has launched a dedicated SPAC Task Force to protect investors in blank check companies and seek redress for corporate malfeasance. Comprised of experienced litigators, investigators, and forensic accountants, the SPAC Task Force is dedicated to rooting out and prosecuting fraud on behalf of injured SPAC investors. The rise in blank check financing poses unique risks to investors. Robbins Geller’s SPAC Task Force represents the vanguard of ensuring integrity, honesty, and justice in this rapidly developing investment arena.
THE LEAD PLAINTIFF 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 lead plaintiff. A lead plaintiff is generally the movant with the greatest financial interest in the relief sought by the putative class who is also typical and adequate of the putative class. A lead plaintiff acts on behalf of all other class members in directing the Lottery.com class action lawsuit. The lead plaintiff can select a law firm of its choice to litigate the Lottery.com class action lawsuit. An investor’s ability to share in any potential future recovery is not dependent upon serving as lead plaintiff of the Lottery.com class action lawsuit.
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 #1 on 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 plaintiffs’ firm. With 200 lawyers in 9 offices, Robbins Geller is one of the largest plaintiffs’ firms in the world and the Firm’s attorneys have obtained many of the largest securities class action recoveries in history, including the largest securities class action recovery ever – $7.2 billion – in In re Enron Corp. Sec. Litig. Please visit the following page for more information:
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