Lottery.com Faces Partial Legal Setback in SPAC Acquisition Case

In a critical legal proceeding, Judge Jennifer L. Rochon at the United States District Court for the Southern District of New York has made a judgment on motions to dismiss in a class action lawsuit related to the SPAC acquisition of Lottery.com. The case revolves around allegations of misstatements before and after the merger concerning financial information, revenue recognition, and compliance with regulations. Key elements addressed include the adequacy of allegations under Sections 10(b) and 14(a) of the Securities Exchange Act against Lottery.com, a SPAC, and its former leadership, with the court making decisive rulings. The Judge found that claims against the company and its former CFO, concerning misrepresentation of post-merger financial performance, were sufficiently pled. Additionally, proxy statements related to regulatory compliance were found flawed, granting plaintiffs further grounds as they prepare potential amendments to their complaint in light of new indictments against the SPAC's ex-CEO.