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Federal Court Dismisses All Claims Against Lottery.com Inc. and Matthew McGahan with Prejudice

1. Court dismissed lawsuit against Lottery.com with prejudice, favoring the defendants. 2. Allegations of fraud by plaintiffs deemed lacking credible evidence. 3. CEO McGahan expressed relief, allowing focus on company operations. 4. Dismissal eliminates legal burdens and enhances corporate image. 5. CEO's optimism may positively influence shareholder sentiment.

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Why Bullish?

The court ruling clears legal uncertainties, thus potentially boosting investor confidence. Historical precedents show stock prices often rally after favorable legal outcomes.

How important is it?

The dismissal significantly reduces legal risk, likely improving stock value perception. This is vital for LTRY, enhancing its operational focus.

Why Short Term?

Positive market reactions typically occur quickly post-legal decision, enhancing immediate investor sentiment. However, long-term impacts depend on operational success.

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LTRYWSPCEDHIAAPL
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); andConspiracy (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; andThe 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.

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