Lottery.com is allegedly involved in false misrepresentation and is currently involved in a legal struggle. The Florida-based supply chain company that initiated this case has reopened interest in the lottery ticket management service. The lawsuit, which includes serious allegations against Lottery.com and its CEO, Matthew McGahan, was just made public by NEXT.io.
Allegations of Fraudulent Investment Proposals
The principal plaintiff in this lawsuit is Astra Supply Chain President Sharon A. McTurk. Ronald Farah, a resident of Boca Raton, Florida, allegedly approached Astra Supply Chain with an offer of a profitable investment opportunity. Farah supposedly suggested that Astra invest in Lottery.com in exchange for shares that were below market value. Farah passed dead in September of the previous year. It’s unclear how exactly Farah and Lottery.com interacted, and it’s also unclear if he had a formal position with the company.
Astra Supply Chain reportedly invested $500,000 in September of last year into SAS Management, a company formerly owned by Lottery.com’s then-CEO, Sohail Quraeshi. However, the total investment by Astra reached $1.9 million. The lawsuit claims that McTurk was encouraged to establish a company named SMRF Holdings and was promised 3,000,000 common stock shares from Lottery.com based on the terms outlined in a letter allegedly signed by McGahan.
Lottery.com has requested to have the lawsuit dismissed in response with a motion. The business contends that the plaintiff did not only base her investment on the disputed letter. The letter was incomplete, according to the defense, and it wasn’t a stand-alone contract. The letter could not be a legally binding contract on its own since it was only a component of a bigger deal, according to Lottery.com’s counsel.
Moreover, Lottery.com asserts that Farah alone, not the business or its current management, made any false claims or misrepresentations. The Florida District Court is currently reviewing the legal matter; the decision is yet to be determined.
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