According to the Complaint, Lottery.com is a technology company that operates a business-to-consumer (B2C) platform enabling players to remotely purchase legally sanctioned lottery games in the United States and internationally. The Company also provides affiliate marketing services under the LotteryLink brand, and delivers lottery data, such as winning numbers and results, to approximately 400 digital publishers and media organizations.
On October 29, 2021, pursuant to a Business Combination Agreement dated February 21, 2021, Trident Acquisitions Corp. (“TDAC”) consummated a business combination with AutoLotto, Inc., which, since its founding in 2015, conducted business as Lottery.com. Following the closing of the Business Combination, the Company changed its name to Lottery.com, the business of AutoLotto became Lottery.com’s business.
The Complaint alleges that throughout the Class Period, Defendants made materially false or misleading statements and/or failed to disclose material information. The Complaint further alleges that: (i) the Company lacked adequate internal accounting controls; (ii) the Company lacked adequate internal controls over financial reporting, including but not limited to those pertaining to revenue recognition and the reporting of cash; (iii) the Company was not in compliance with state and federal laws governing the sale of lottery tickets; and (iv) as a result, the Company's public statements were materially false and misleading at all relevant times.
On November 18, 2022, the Court issued an Order appointing Lead Plaintiffs and Counsel. Lead Plaintiffs filed an amended Complaint on January 31, 2023. On March 10, the Court issued an Order consolidating cases. All future docketing was ordered to be done in the lead case 22-CV-07111.
Defendants filed a Motion to Dismiss the amended Complaint on April 3, 2023. On February 6, 2024, the Court issued an Order granting Defendants' Motion to Dismiss. Plaintiff was given leave to amend the Complaint.
On February 27, 2024, Lead Plaintiffs filed a second amended Complaint. Lead Plaintiffs filed a third amended Complaint on June 12.
