PHILADELPHIA, PA / ACCESSWIRE / September 28, 2022 / Berger Montague has filed a class action lawsuit in the United States District Court for the Southern District of New York on behalf of investors who purchased securities of Lottery.com, Inc. ("Lottery.com") (NASDAQ:LTRY) between November 15, 2021 and July 29, 2022 (the "Class Period").
Investor Deadline: Investors who purchased or acquired Lottery.com securities mayno later than October 18, 2022, seek to be appointed as a lead plaintiff representative of the class. For additional information or to learn how to participate in this litigation, please contact Berger Montague: James Maro at [email protected] or (215) 875-3093, or Andrew Abramowitz at [email protected] or (215) 875-3015 or visit: https://www.lotterydotcomclassaction.com/
According to the complaint, on July 29, 2022, in a Form 8-K filed with the SEC, the defendants informed the market that Lottery.com 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. Moreover, because Lottery.com's resources were not sufficient to fund its operations for a twelve-month period, "there is substantial doubt about the Company'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.
In reaction to this news, shares of Lottery.com declined 64% a single trading day, falling $0.52 per share, from a closing price of $0.81 per share on July 28, 2022 to a close of $0.29 per share on July 29, 2022.
The complaint alleges that, throughout the Class Period, the defendants made materially false or misleading statements and/or failed to disclose that, inter alia: (i) Lottery.com lacked adequate internal accounting controls; (ii) Lottery.com lacked adequate internal controls over financial reporting, including but not limited to those pertaining to revenue recognition and the reporting of cash; (iii) Lottery.com was not in compliance with state and federal laws governing the sale of lottery tickets; and (iv) as a result, Lottery.com's public statements were materially false and misleading at all relevant times.
A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member's claim is typical of the claims of other class members, and that the class member will adequately represent the class. Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. Any member of the purported class may move the Court to serve as a lead plaintiff through counsel of his/her choice, or may choose to do nothing and remain an inactive class member.
Berger Montague, with offices in Philadelphia, Minneapolis, Washington, D.C., and San Diego, has been a pioneer in securities class action litigation since its founding in 1970. Berger Montague has represented individual and institutional investors for over five decades and serves as lead counsel in courts throughout the United States.
James Maro, Senior Counsel
Andrew Abramowitz, Senior Counsel
SOURCE: Berger Montague