The United States District Court for the Southern District of Florida dropped all charges against Lottery.com, a digital lottery and sports entertainment leader. The court dismissed the lawsuit, Sharon A. McTurk, et al. v. Lottery.com, Inc. and Matthew McGahan, with prejudice, barring the plaintiffs from attempting the suit again.
Sharon A. McTurk and her affiliated parties sued the company for fraudulent misrepresentation, negligent misrepresentation, conspiracy, and aiding and abetting. The suit alleged Lottery.com promised McTurk discounted stock in the company in return for financial backing. However, after examining the case, the court held the accusations didn't meet the necessary legal tests and, therefore, had no standing to be heard.
The court ruled in Lottery.com's favor by granting a motion to dismiss based on the plaintiff's failure to present a legally adequate claim. The decision states the allegations lacked the legal substance required to move forward in the court system.
Lottery.com issued a statement after the ruling, emphasizing the requirement for facts in lawsuits. The company noted that because court dismissed the case with prejudice, it's closed permanently, and no lawsuit can be brought on the matter.
“I am delighted with the honorable judge’s decision. The case required the Company to allocate financial resources and extraordinary amounts of time that would have been better spent on our turnaround efforts and operations. Many untruths were told in this story that caused immense stress for both me and my family. This ruling has vindicated me and the Company. I am happy that we can focus on building for the future and delivering value to our shareholders,” said Matthew McGahan, Chairman and CEO of Lottery.com.
Not completely in the clear
Lottery.com faced legal and financial problems during the past few years, including concerns about its financial reporting and management. The business has been restructuring to restore its credibility and enhance its operating structure. U.S. authorities arrested the company's former executive, Vadim Komissarov, last week and charged him with fraudulently inflating revenue figures.
Komissarov previously served as CEO of Trident Acquisitions Corp (TDAC). The firm facilitated a merger with Lottery.com in 2021, taking the company public. According to federal investigators, Komissarov altered financial records so the merger would proceed and later mischaracterized the company's proper financial condition.
Prosecutors allege Komissarov made a $9 million deal using the alias "Vlad" to make Lottery.com appear more financially stable than it was. Komissarov used the artificial move to complete the company's merger and lead investors to believe the business was in a much better state.
High 5 Games and TwinSpires experience lawsuits
Lottery.com is not the only gambling operator to experience a U.S. lawsuit recently. High 5 Games and TwinSpires had their fair share of legal mishaps last month.
First, a Washington judge found High 5 Games liable to pay up to $25 million in damages after it lost its lawsuit. The judge found the ruling's reason was that High 5’s online casino-style games violated state laws.
In contrast, a federal judge granted a preliminary injunction against the horse-betting site TwinSpires, stopping the Michigan Gaming Control Board from enforcing its state horse racing gambling laws on the operator.
