In the past few years, Lottery.com has been involved in numerous scandals, some of which have led to legal actions. Now, the company is once again in trouble due to allegations of fraudulent misrepresentations described in a lawsuit filed by a supply chain enterprise. Florida.
Sharon A. McTurk, President of Astra Supply Chain, is listed as the plaintiff in the legal action against Lottery.com and its CEO Matthew McGahan, as announced in a report by NEXT.io.
In the lawsuit, the plaintiff claims that an individual named Ronald Farah from Boca Raton, Florida, offered a unique investment opportunity for the supply chain business in exchange for financing. It is currently unclear what the relationship between Farah and Lottery.com is, and whether he formally held a position in the lottery management services sector.
It is noteworthy that Farah reportedly passed away last September. Nevertheless, the plaintiff still claims that Farah's actions and proposals played a key role in acquiring Lottery.com stock at prices below market value.
Initially, Astra Supply Chain completed an investment transfer of $500,000 last September. This transaction was passed to a company owned by then CEO of Lottery.com, Sohail Quraeshi, named SAS Management. However, the total investment by the Florida supply chain business amounted to $1.9 million.
According to a letter allegedly signed by McGahan, McTurk was asked to establish a company named SMRF Holdings. Moreover, the plaintiff claims that she was promised approximately 3,000,000 shares of common stock, "under agreed terms and conditions, for your work or service to Lottery.com".
In response to these allegations, Lottery.com filed a motion to dismiss. The company and its boss McGahan argue that the plaintiff did not solely rely on the aforementioned letter for investment. Furthermore, lawyers representing Lottery.com explained: "Firstly, the letter is not a complete contract as it is 'subject to' separate 'agreed terms and conditions'."
Moreover, they argue: "The plaintiff cannot reasonably rely on terms they are unaware of. The letter at most is akin to a map, which by itself cannot be substantive."
Furthermore, Lottery.com argues that although it was the recipient of the funds, the aforementioned fraudulent promises and misrepresentations were entirely made by Farah.
Currently, the legal claims are being presented in a Florida state court.
