Federal Court Dismisses All Claims Against Lottery.com Inc. and Matthew McGahan with Prejudice
Lottery.com (Nasdaq: LTRY) announces a significant legal victory as the United States District Court for the Southern District of Florida has dismissed all claims against the company and CEO Matthew McGahan with prejudice. The lawsuit, filed by Sharon A. McTurk and affiliated entities, alleged fraudulent misrepresentation, negligent misrepresentation, aiding and abetting, and conspiracy.
The plaintiffs had claimed they were promised company shares at below market price in exchange for financial backing. However, the Court found these allegations failed to meet basic legal standards. The dismissal with prejudice means the plaintiffs cannot refile the same claims.
McGahan expressed relief at the ruling, noting the case had diverted resources from the company's turnaround efforts and operations. The Chairman and CEO stated this vindication allows the company to refocus on building future value for shareholders.
Lottery.com (Nasdaq: LTRY) annuncia una significativa vittoria legale poiché il Tribunale Distrettuale degli Stati Uniti per il Distretto Meridionale della Florida ha respinto tutte le accuse contro l'azienda e il CEO Matthew McGahan con pregiudizio. La causa, intentata da Sharon A. McTurk e entità affiliate, accusava di falsa rappresentazione fraudolenta, rappresentazione negligente, complicità e cospirazione.
Gli attori sostenevano di essere stati promessi azioni dell'azienda a un prezzo inferiore a quello di mercato in cambio di supporto finanziario. Tuttavia, il Tribunale ha ritenuto che queste accuse non soddisfacessero i requisiti legali di base. Il respingimento con pregiudizio significa che gli attori non possono riproporre le stesse accuse.
McGahan ha espresso sollievo per la sentenza, osservando che il caso aveva distolto risorse dagli sforzi di recupero e dalle operazioni dell'azienda. Il Presidente e CEO ha dichiarato che questa assoluzione consente all'azienda di concentrarsi nuovamente sulla creazione di valore futuro per gli azionisti.
Lottery.com (Nasdaq: LTRY) anuncia una victoria legal significativa, ya que el Tribunal de Distrito de los Estados Unidos para el Distrito Sur de Florida ha desestimado todas las reclamaciones contra la empresa y el CEO Matthew McGahan con prejuicio. La demanda, presentada por Sharon A. McTurk y entidades afiliadas, alegaba representación fraudulenta, representación negligente, complicidad y conspiración.
Los demandantes afirmaban que se les prometieron acciones de la empresa a un precio inferior al del mercado a cambio de respaldo financiero. Sin embargo, el Tribunal encontró que estas alegaciones no cumplían con los estándares legales básicos. La desestimación con prejuicio significa que los demandantes no pueden volver a presentar las mismas reclamaciones.
McGahan expresó alivio por el fallo, señalando que el caso había desviado recursos de los esfuerzos de recuperación y operaciones de la empresa. El Presidente y CEO declaró que esta vindicación permite a la empresa reenfocarse en construir valor futuro para los accionistas.
Lottery.com (Nasdaq: LTRY)는 미국 플로리다 남부 지방법원에서 회사와 CEO 매튜 맥가한에 대한 모든 주장들을 기각했다고 발표하며 중요한 법적 승리를 거두었습니다. 이 소송은 샤론 A. 맥터크와 관련된 단체들이 제기했으며, 사기성 허위 진술, 과실에 의한 허위 진술, 공모 및 음모를 주장했습니다.
원고들은 재정적 지원의 대가로 시장 가격 이하의 회사 주식을 약속받았다고 주장했습니다. 그러나 법원은 이러한 주장이 기본적인 법적 기준을 충족하지 못했다고 판단했습니다. 기각은 원고들이 동일한 주장을 다시 제기할 수 없음을 의미합니다.
맥가한은 판결에 안도감을 표하며, 이 사건이 회사의 회복 노력과 운영에서 자원을 분산시켰다고 언급했습니다. 회장 겸 CEO는 이번 승인이 회사가 주주를 위한 미래 가치를 구축하는 데 다시 집중할 수 있도록 한다고 말했습니다.
Lottery.com (Nasdaq: LTRY) annonce une victoire légale significative, le tribunal de district des États-Unis pour le district sud de la Floride ayant rejeté toutes les accusations contre l'entreprise et son PDG Matthew McGahan avec préjudice. Le procès, intenté par Sharon A. McTurk et des entités affiliées, alléguait une fausse représentation frauduleuse, une fausse représentation négligente, une complicité et une conspiration.
Les plaignants avaient affirmé qu'on leur avait promis des actions de l'entreprise à un prix inférieur au prix du marché en échange d'un soutien financier. Cependant, le tribunal a constaté que ces allégations ne répondaient pas aux normes juridiques de base. Le rejet avec préjudice signifie que les plaignants ne peuvent pas déposer à nouveau les mêmes accusations.
McGahan a exprimé son soulagement face à ce jugement, notant que l'affaire avait détourné des ressources des efforts de redressement et des opérations de l'entreprise. Le président-directeur général a déclaré que cette réhabilitation permet à l'entreprise de se recentrer sur la création de valeur future pour les actionnaires.
Lottery.com (Nasdaq: LTRY) kündigt einen bedeutenden juristischen Sieg an, da das US-Bezirksgericht für den südlichen Distrikt von Florida alle Ansprüche gegen das Unternehmen und CEO Matthew McGahan mit Vorurteil abgewiesen hat. Die Klage, eingereicht von Sharon A. McTurk und verbundenen Unternehmen, behauptete betrügerische Falschdarstellung, fahrlässige Falschdarstellung, Beihilfe und Verschwörung.
Die Kläger hatten behauptet, ihnen seien Unternehmensanteile zu einem Preis unter dem Marktpreis im Austausch für finanzielle Unterstützung versprochen worden. Das Gericht stellte jedoch fest, dass diese Behauptungen die grundlegenden rechtlichen Standards nicht erfüllten. Die Abweisung mit Vorurteil bedeutet, dass die Kläger die gleichen Ansprüche nicht erneut einreichen können.
McGahan äußerte Erleichterung über das Urteil und bemerkte, dass der Fall Ressourcen von den Bemühungen und dem Betrieb des Unternehmens abgezogen hatte. Der Vorsitzende und CEO erklärte, dass diese Entlastung es dem Unternehmen ermöglicht, sich wieder auf den Aufbau zukünftiger Werte für die Aktionäre zu konzentrieren.
- Legal victory eliminates significant litigation risk
- Company can refocus resources on turnaround efforts
- No future legal exposure from this case due to dismissal with prejudice
- Company incurred legal defense costs and resource allocation
- Management time diverted from operational priorities
Insights
The United States District Court for the Southern District of Florida has delivered a decisive legal victory for Lottery.com and its CEO Matthew McGahan by dismissing all four claims against them with prejudice. This ruling completely bars the plaintiffs from refiling these same allegations, which included serious charges of fraudulent misrepresentation, negligent misrepresentation, aiding and abetting, and conspiracy.
The court's dismissal with prejudice represents more than a procedural win—it signifies the court found the plaintiffs' allegations fundamentally deficient as a matter of law. For investors, this eliminates what could have been a significant contingent liability and source of uncertainty for the company.
For a micro-cap company like Lottery.com, with a market capitalization of just
This legal victory comes at a critical juncture as the company pursues turnaround efforts. As McGahan noted in his statement, the litigation had forced the company to redirect financial resources and management attention away from operational improvements. The resolution allows leadership to refocus entirely on strategic initiatives and business development.
While this legal win removes one significant challenge, investors should note that Lottery.com still faces other hurdles mentioned in their forward-looking statements, including potential Nasdaq compliance issues and ongoing financial constraints. The dismissal improves the company's risk profile but doesn't fundamentally alter its operational outlook or financial position.
From a governance perspective, the dismissal also helps stabilize leadership by removing allegations that could have raised questions about management integrity and transparency regarding share issuance practices—particularly important for a publicly traded company where proper securities handling is essential.
FORT WORTH, Texas, Feb. 27, 2025 (GLOBE NEWSWIRE) -- Lottery.com Inc. (Nasdaq: LTRY, LTRYW) (“Lottery.com” or the “Company”), a leading technology company in digital lottery and sports entertainment, is pleased to announce The United States District Court for the Southern District of Florida has ruled in favor of the Company and Matthew McGahan (“Defendants”), granting with prejudice the Motion to Dismiss for Failure to State a Claim in the case styled Sharon A. McTurk, et al. v. Lottery.com, Inc. and Matthew McGahan (Case No. 24-60993-CIV-DAMIAN).
The lawsuit, filed by Sharon A. McTurk and her affiliated entities (Rutherford Enterprises, LLC, SJB Solutions, LLC and Astra Supply Chain, LLC, collectively “Plaintiffs”), alleged four causes of action against the Defendants:
- Fraudulent Misrepresentation (Count I);
- Negligent Misrepresentation (Count II);
- Aiding and Abetting (Count III); and
- Conspiracy (Count IV).
Plaintiffs claimed that McTurk was promised shares of the Company’s common stock at below market price in exchange for financial backing, however, after a comprehensive review, the Court found that the allegations failed to meet the most basic legal standards and could not proceed.
COURT DECISION
The court ordered and adjudged that:
- The Defendants’ Motion to Dismiss is granted;
- The Plaintiffs’ Complaint is dismissed with prejudice;
- All pending deadlines and hearings are terminated;
- All other pending motions are denied as moot; and
- The Clerk of the Court has been directed to close the case.
This ruling signifies the final dismissal of all claims against the Defendants. As the case was dismissed with prejudice, the Plaintiffs are barred from refiling the same claims in this form.
IMPACT OF THE RULING
The Court’s ruling underscored the lack of credible evidence presented by the Plaintiffs. The Court determined that the allegations did not meet the required legal threshold, thereby rejecting all claims brought against Lottery.com and Matthew McGahan.
The Company and Mr. McGahan have consistently denied the allegations. This dismissal allows both parties to move forward without any further legal considerations related to this matter.
Following the ruling, Matthew McGahan, Chairman and CEO of Lottery.com, expressed relief and optimism about the future:
“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.”
CONCLUSION
The Court’s ruling underscores the necessity of credible evidence in legal disputes. By dismissing the case with prejudice, the Court has closed this matter, effectively bringing an end to the litigation.
For more information, please visit www.lottery.com or contact our media relations team at press@lottery.com.
Important Notice Regarding Forward-Looking Statements
This press release contains statements that constitute “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements, other than statements of present or historical fact included in this press release, regarding the Company’s strategy, future operations, prospects, plans and objectives of management, are forward-looking statements. When used in this Form 8-K, the words “could,” “should,” “will,” “may,” “believe,” “anticipate,” “intend,” “estimate,” “expect,” “project,” “initiatives,” “continue,” the negative of such terms and other similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain such identifying words. These forward-looking statements are based on management’s current expectations and assumptions about future events and are based on currently available information as to the outcome and timing of future events. The forward-looking statements speak only as of the date of this press release or as of the date they are made. The Company cautions you that these forward-looking statements are subject to numerous risks and uncertainties, most of which are difficult to predict and many of which are beyond the control of the Company. In addition, the Company cautions you that the forward-looking statements contained in this press release are subject to risks and uncertainties, including but not limited to, any future findings from ongoing review of the Company’s internal accounting controls, additional examination of the preliminary conclusions of such review, the Company’s ability to secure additional capital resources, the Company’s ability to continue as a going concern, the Company’s ability to respond in a timely and satisfactory matter to the inquiries by Nasdaq, the Company’s ability to regain compliance with the Bid Price Requirement, the Company’s ability to regain compliance with Nasdaq Listing Rules, the Company’s ability to become current with its SEC reports, and those additional risks and uncertainties discussed under the heading “Risk Factors” in the Form 10-K/A filed by the Company with the SEC on June 14, 2024, and the other documents filed, or to be filed, by the Company with the SEC. Additional information concerning these and other factors that may impact the operations and projections discussed herein can be found in the reports that the Company has filed and will file from time to time with the SEC. These SEC filings are available publicly on the SEC’s website at www.sec.gov. Should one or more of the risks or uncertainties described in this press release materialize or should underlying assumptions prove incorrect, actual results and plans could differ materially from those expressed in any forward-looking statements. Except as otherwise required by applicable law, the Company disclaims any duty to update any forward-looking statements, all of which are expressly qualified by the statements in this section, to reflect events or circumstances after the date of this press release.
This press release was published by a CLEAR® Verified individual.
FAQ
What were the specific claims dismissed against Lottery.com (LTRY) in the Florida court case?
What does the 'with prejudice' dismissal mean for Lottery.com (LTRY)?
How will the court dismissal impact Lottery.com's (LTRY) operations?
What was the basis of the lawsuit against Lottery.com (LTRY)?
