NEW YORK, Sept. 12, 2022 (GLOBE NEWSWIRE) — 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 the Lottery acquirers. com, Inc. (“Lottery.com” or the “Company”) LTRY Securities from 15 November 2021 to 29 July 2022, both dates inclusive (the “Collection Period”). Investors have until October 18, 2022 to petition the court to appoint a lead plaintiff in the lawsuit.
Lottery.com operates as a lottery service company. As an independent third-party provider of lottery games, it develops and operates a platform that enables remote purchasing of legally sanctioned lottery games.
On July 29, 2022, the company told the market in a Form 8-K filed with the SEC that it “does not have sufficient financial resources to fund its operations or to service certain existing obligations,” and that it therefore intends to do so to furlough certain employees effective July 29, 2022. With Lottery.com’s resources insufficient to fund its operations for a period of 12 months, “there are significant doubts as to the Company’s ability to continue in business,” and the company could be forced to cease operations or seek liquidation of the company’s assets. As a result of this news, the price of Lottery.com stock fell $0.52 per share, or approximately 64.2%, from $0.81 per share to a closing price of $0.29 on July 29, 2022.
The Complaint alleges that the Defendants made false and/or misleading statements and/or failed to disclose throughout the Class Period, among other things: (1) the company lacked adequate internal accounting controls; (2) the company’s lack of adequate internal controls over financial reporting, including but not limited to those related to revenue recognition and cash reporting; (3) the Company has failed to comply with state and federal laws regarding the sale of lottery tickets; and (4) consequently, the company’s public statements…
