This case was last updated from U.S. District Courts on 11/22/2022 at 22:26:26 (UTC).

McDonald v. Lottery.com, Inc. et al

Case Summary

On October 11, 2022, Matthew K. McDonald (“Plaintiff”), individually and on behalf of all other persons similarly situated, represented by Joe Kendall of Kendall Law Group, PLLC, filed a class action lawsuit against Lottery.com, Anthony DiMatteo (“DiMatteo”), Ryan Dickinson (“Dickinson”), Matthew Clemenson (“Clemenson”), Vadim Komissarov (“Komissarov”), Marat Rosenberg, Ilya Ponomarev, Thomas Gallagher and Gennadii Butkevych (collectively, “Defendants”), seeking injunctive relief and damages for alleged violation of the Securities Exchange Act, 1934 (the “1934 Act”). This case was filed in U.S. District Court for the Western District of Texas with Judge Lee Yeakel presiding.

In the complaint, Plaintiff stated, “This is a securities fraud class action on behalf of all persons or entities who purchased or otherwise acquired Lottery.com publicly traded securities between November 19, 2020 and July 29, 2022, inclusive (the ‘Class Period’).”

In the complaint, Plaintiff alleged, “On October 18, 2021, TDAC filed the final proxy statement and prospectus for the Business Combination on Form 424B3, which was signed by the Blank Check Defendants (the ‘Proxy’). The Proxy stated that shareholders should vote in favor of the business proposal. On October 21, 2021 – only one week prior to the special stockholders’ meeting to approve the Business Combination – TDAC and Lottery.com jointly issued a press release claiming that Lottery.com had achieved ‘Strong Preliminary Third Quarter 2021 Revenues’ in the range of $22 million to $24 million.”

Plaintiff claimed, “The release stated that ‘this represents sequential revenue growth of greater than 135% compared to $9.3 million in the second quarter of 2021. On October 27, 2021, TDAC issued a press release stating that ‘stockholders holding 5,765,400 shares, or 99.6% of Trident’s outstanding shares, elected to retain their common stock. As a result, Lottery.com expects to receive over $63 million in gross proceeds at the closing of the Business Combination’.”

Plaintiff also alleged, “On October 28, 2021, TDAC shareholders approved the Business Combination at a special meeting based on the materially false and misleading Proxy and other representations. Upon closing, TDAC was renamed Lottery.com.”

Plaintiff then claimed, “On September 9, 2022, Lottery.com filed with the SEC a Form 8-K which disclosed that four members of its Board had resigned; specifically, former CEO DiMatteo, William Thompson, Jr., Steven Cohen, and Lisa Borders. The Form 8-K stated that Kathryn Lever, Lottery.com’s Chief Legal Officer, Chief Operating Officer and Secretary, had also provided her notice of resignation.”

Additionally, Plaintiff alleged, “On October 6, 2022, Lottery.com filed with the SEC a Form 8-K which disclosed that its independent registered accounting firm, Armanino, had resigned effective immediately. The Form 8-K stated, ‘based on Armanino’s evaluation of the facts and circumstances pertaining to matters disclosed in the Company’s recent Form 8-K filings regarding the resignations of certain officers and directors, Armanino is unable to rely on the representations of management.’”

Plaintiff then alleged, “As a result of defendants’ wrongful acts and omissions, plaintiff and the Class purchased Lottery.com securities at artificially inflated prices and were damaged thereby.”

Plaintiff presented two claims for relief, including for the alleged violation of Section 10(b) and 20(a) of the 1934 Act. 

In the prayer for relief, Plaintiff requested a judgement granting injunctive relief. Plaintiff also requested an award for damages along with costs of litigation. 

This is a summary of a legal complaint. All statements, claims, and allegations listed herein reflect the position of the plaintiff only and do not represent the position of UniCourt. Additionally, this case summary may not reflect the current position of the parties to this litigation or the current status of this case. To view the latest case updates and court documents, please sign up for a UniCourt account.

Case Details Parties Documents Dockets

 

Case Details

  • Case Number:

    1:22-CV-01025

  • Filing Date:

    10/11/2022

  • Case Status:

    Disposed - Other Disposed

  • Case Type:

    Finance - Security/Commodity/Exchange

Judge Details

Presiding Judge

Lee Yeakel

 

Party Details

Plaintiff

Matthew K. McDonald

Defendants

Lottery.com, Inc.

Anthony DiMatteo

Ryan Dickinson

Matthew Clemenson

Vadim Komissarov

Marat Rosenberg

Ilya Ponomarev

Thomas Gallagher

Gennadii Butkevych

Attorney/Law Firm Details

Plaintiff Attorney

Joe Kendall

Attorney at Kendall Law Group, PLLC

3811 Turtle Creek Blvd., Suite 1450

Dallas, TX 75219

 

Court Documents

1 #1

Main Document

1 #1

Exhibit Certification of Matthew K. McDonald

#2

(#2) JS44 (Civil Cover Sheet) submitted by Matthew K. McDonald. (Kendall, Joe) (Entered: 10/11/2022)

#3

(#3) REQUEST FOR ISSUANCE OF SUMMONS by Matthew K. McDonald. - All Defendants (Kendall, Joe) (Entered: 10/11/2022)

#4

(#4) Summons Issued as to All Defendants. (rn) (Entered: 10/13/2022)

#5

(#5) ORDER REASSIGNING CASE. Case reassigned to Judge Lee Yeakel for all proceedings. Judge Robert Pitman no longer assigned to case. Signed by Judge Robert Pitman. (dm) (Entered: 10/13/2022)

#6

(#6) SUMMONS Returned Executed by Matthew K. McDonald. Anthony DiMatteo served on 10/27/2022, answer due 11/17/2022. (Kendall, Joe) (Entered: 11/07/2022)

#7

(#7) SUMMONS Returned Executed by Matthew K. McDonald. Thomas Gallagher served on 10/28/2022, answer due 11/18/2022. (Kendall, Joe) (Entered: 11/07/2022)

#8

(#8) ORDERED that the portion of the Motion of Movant Lottery.comSecurities Group for Consolidation, Appointment as Lead Plaintiff, and Approval of Selection of Co-Lead Counsel, filed October 18, 2022 (the "Lottery.com Securities Group Motion"), seeking consolidation of the above entitled cause with Cause No. 1:22-CV-00907-LY is DISMISSED AS MOOT. Signed by Judge Lee Yeakel. (dm) (Entered: 11/08/2022)

#9

(#9) NOTICE of Voluntary Dismissal by Matthew K. McDonald (Kendall, Joe) (Entered: 11/15/2022)

#10

(#10) ORDER CLOSING CASE. Signed by Judge Lee Yeakel. (dm) (Entered: 11/21/2022)

#11

(#11) ANSWER to #1 Complaint by Ilya Ponomarev.(dm) (Entered: 11/22/2022)

 

Docket Entries

  • 11/21/2022
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  • Docket(#11) ANSWER to #1 Complaint by Ilya Ponomarev.(dm) (Entered: 11/22/2022)

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  • 11/21/2022
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  • Docket(#10) ORDER CLOSING CASE. Signed by Judge Lee Yeakel. (dm) (Entered: 11/21/2022)

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  • 11/15/2022
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  • Docket(#9) NOTICE of Voluntary Dismissal by Matthew K. McDonald (Kendall, Joe) (Entered: 11/15/2022)

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  • 11/08/2022
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  • Docket(#8) ORDERED that the portion of the Motion of Movant Lottery.comSecurities Group for Consolidation, Appointment as Lead Plaintiff, and Approval of Selection of Co-Lead Counsel, filed October 18, 2022 (the "Lottery.com Securities Group Motion"), seeking consolidation of the above entitled cause with Cause No. 1:22-CV-00907-LY is DISMISSED AS MOOT. Signed by Judge Lee Yeakel. (dm) (Entered: 11/08/2022)

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  • 11/07/2022
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  • Docket(#7) SUMMONS Returned Executed by Matthew K. McDonald. Thomas Gallagher served on 10/28/2022, answer due 11/18/2022. (Kendall, Joe) (Entered: 11/07/2022)

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  • 11/07/2022
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  • Docket(#6) SUMMONS Returned Executed by Matthew K. McDonald. Anthony DiMatteo served on 10/27/2022, answer due 11/17/2022. (Kendall, Joe) (Entered: 11/07/2022)

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  • 10/13/2022
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  • Docket(#5) ORDER REASSIGNING CASE. Case reassigned to Judge Lee Yeakel for all proceedings. Judge Robert Pitman no longer assigned to case. Signed by Judge Robert Pitman. (dm) (Entered: 10/13/2022)

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  • 10/13/2022
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  • Docket(#4) Summons Issued as to All Defendants. (rn) (Entered: 10/13/2022)

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  • 10/11/2022
  • DocketDEMAND for Trial by Jury by Matthew K. McDonald. (rn) (Entered: 10/13/2022)

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  • 10/11/2022
  • DocketIf ordered by the court, all referrals and consents in this case will be assigned to Magistrate Judge Lane (rn) (Entered: 10/12/2022)

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  • 10/11/2022
  • DocketCase assigned to Judge Robert Pitman. CM WILL NOW REFLECT THE JUDGE INITIALS AS PART OF THE CASE NUMBER. PLEASE APPEND THESE JUDGE INITIALS TO THE CASE NUMBER ON EACH DOCUMENT THAT YOU FILE IN THIS CASE. (rn) (Entered: 10/12/2022)

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  • 10/11/2022
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  • Docket(#3) REQUEST FOR ISSUANCE OF SUMMONS by Matthew K. McDonald. - All Defendants (Kendall, Joe) (Entered: 10/11/2022)

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  • 10/11/2022
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  • Docket(#2) JS44 (Civil Cover Sheet) submitted by Matthew K. McDonald. (Kendall, Joe) (Entered: 10/11/2022)

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  • 10/11/2022
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  • Docket(#1) COMPLAINT - COMPLAINT FOR VIOLATIONS OF THE FEDERAL SECURITIES LAWS ( Filing fee $ 402 receipt number ATXWDC-16621565), filed by Matthew K. McDonald. (Attachments: #1 Exhibit Certification of Matthew K. McDonald)(Kendall, Joe) (Entered: 10/11/2022)

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