Last Updated on: 9th April 2024, 03:27 pm
In the wake of troubling disclosures, shareholders of Lottery.com Inc. (NASDAQ: LTRY) have initiated an independent examination of the company’s internal operations. This action follows the controversial elevation of Matthew McGahan from an independent director to multiple key positions, including Chairman, CEO, President, and Company Secretary, a move that contravenes NASDAQ’s regulations and casts serious doubts on the firm’s integrity and transparency.
Disturbingly, it has been discovered that under McGahan’s stewardship, a substantial allocation of 3,253,147 shares was made to Lottery.com’s management and its external advisors, a clear violation of NASDAQ’s standards and the company’s own by-laws, leading to a significant [dilution of shareholder value] and sparking outrage and calls for immediate corrective action among the shareholders.
The violations are outlined as follows:
- Breach of Rule 5635(d): The LTRY board authorised an excessive distribution of over 3,253,147 shares to its executives and external advisors, accounting for a staggering 44.2% of the total outstanding shares of LTRY. This action starkly contravenes Rule 5635(d), which stipulates the necessity for shareholder approval for the issuance of 20% or more of the outstanding shares or voting rights.
- Contravention of the Lottery.com 2021 Incentive Plan: The decision to distribute shares was taken in clear disregard for the Lottery.com 2021 Incentive Plan’s guidelines. The quantity of shares allocated significantly exceeds the plan’s established limits, deeming the distribution unauthorized and void.
- Unjustified Allocation to External Advisors: Inexplicably, 300,000 shares were allocated to LTRY’s external consultants without any transparent justification for such a considerable allocation. The opacity surrounding the agreements with these consultants and their pending debts raises grave concerns about the legitimacy and intentions of these share distributions.
A spokesperson for the shareholders declared: “Considering these grave violations, we, the shareholders, demand immediate action to deny the registration of LTRY shares to the members of the Board of Directors and external advisors named in the S-3 Form dated February 12, 2024. These individuals include Matthew McGahan, Robert Stubblefield, Gregory Potts, Barney Battles, Christopher Gooding, Paul S. Jordan, Tamer Hassan, Amar Ali Law PLLC, Randall Lanham, Esq., Andrew R. Korn, Esq., and Andrey Nikitin who was previously convicted of fraud and served time in jail as Andrey Ryjenko and is now hiding behind his wife’s surname.”
Lottery.com shareholders firmly assert their entitlement to pursue all available legal remedies should these shares be improperly awarded to the specified individuals. They call for unequivocal accountability, transparency, and strict adherence to corporate governance standards from Lottery.com Inc.
An in-depth inquiry is also being conducted into McGahan’s past, notably his involvement in the supply of PPE to the UK Government during the Covid-19 pandemic and his role in the UK charity, Mask Our Heroes.
The findings from this investigation, undertaken by an independent financial intelligence entity, are expected to be made public shortly.
About Lottery.com Inc.
Lottery.com Inc. is a leading provider of online lottery services, offering players a convenient and secure platform to participate in various national and international lotteries. With a commitment to transparency and integrity, Lottery.com Inc. strives to provide an exceptional lottery experience for its users. It is currently listed on NASDAQ.
