Lottery.com Closes in on Legal Action Against Coordinated ‘Short and Distort’ Campaign
Lottery.com (NASDAQ: LTRY) announced it is finalizing legal evidence of a coordinated 'short and distort' campaign targeting the company. Working with Paul Hastings LLP, the company is pursuing legal action against individuals and entities engaged in alleged market manipulation.
Christopher Gooding, Independent Director and Audit Committee member, identified three groups involved: aggressive former insiders using confidential information, professional short-sellers with complicit brokers facilitating illegal naked short selling, and opportunistic traders influenced by false media narratives. The company has issued cease-and-desist letters and warns of impending legal action and regulatory referrals.
Lottery.com (NASDAQ: LTRY) ha annunciato di essere in fase di completamento della raccolta di prove legali riguardanti una campagna coordinata di 'short and distort' rivolta contro la società. In collaborazione con Paul Hastings LLP, l'azienda sta intraprendendo azioni legali contro individui ed entità coinvolti in presunte manipolazioni di mercato.
Christopher Gooding, Direttore Indipendente e membro del Comitato di Revisione, ha identificato tre gruppi coinvolti: ex insider aggressivi che utilizzano informazioni riservate, venditori allo scoperto professionisti con broker complici che facilitano vendite allo scoperto illegali senza copertura, e operatori opportunisti influenzati da false narrazioni mediatiche. La società ha inviato lettere di diffida e avverte di imminenti azioni legali e segnalazioni alle autorità di regolamentazione.
Lottery.com (NASDAQ: LTRY) anunció que está finalizando la recopilación de pruebas legales sobre una campaña coordinada de 'short and distort' dirigida contra la empresa. Trabajando con Paul Hastings LLP, la compañía está emprendiendo acciones legales contra individuos y entidades involucradas en presunta manipulación del mercado.
Christopher Gooding, Director Independiente y miembro del Comité de Auditoría, identificó tres grupos implicados: ex internos agresivos que utilizan información confidencial, vendedores en corto profesionales con corredores cómplices que facilitan ventas en corto desnudas ilegales, y operadores oportunistas influenciados por narrativas mediáticas falsas. La compañía ha enviado cartas de cese y desistimiento y advierte sobre próximas acciones legales y remisiones regulatorias.
Lottery.com (NASDAQ: LTRY)는 회사를 대상으로 한 조직적인 '쇼트 앤 디스토트(short and distort)' 캠페인에 대한 법적 증거 수집을 마무리하고 있다고 발표했습니다. Paul Hastings LLP와 협력하여, 회사는 시장 조작 혐의가 있는 개인 및 단체를 상대로 법적 조치를 진행 중입니다.
독립 이사이자 감사위원회 멤버인 크리스토퍼 구딩은 세 그룹을 지목했습니다: 기밀 정보를 이용하는 공격적인 전 내부자들, 불법 무담보 공매도를 조장하는 공모 브로커와 함께 활동하는 전문 쇼트셀러들, 그리고 허위 언론 보도에 영향을 받은 기회주의적 트레이더들. 회사는 중지 명령서를 발송했으며 임박한 법적 조치와 규제 기관 신고를 경고하고 있습니다.
Lottery.com (NASDAQ: LTRY) a annoncé qu'elle finalise des preuves légales concernant une campagne coordonnée de « short and distort » ciblant l'entreprise. En collaboration avec Paul Hastings LLP, la société engage des actions en justice contre des individus et entités impliqués dans une manipulation présumée du marché.
Christopher Gooding, administrateur indépendant et membre du comité d'audit, a identifié trois groupes impliqués : anciens initiés agressifs utilisant des informations confidentielles, vendeurs à découvert professionnels avec des courtiers complices facilitant des ventes à découvert illégales, et traders opportunistes influencés par de fausses narrations médiatiques. La société a envoyé des lettres de cessation et avertit de poursuites judiciaires imminentes ainsi que de signalements aux autorités de régulation.
Lottery.com (NASDAQ: LTRY) gab bekannt, dass es die rechtlichen Beweise für eine koordinierte 'Short-and-Distort'-Kampagne gegen das Unternehmen finalisiert. In Zusammenarbeit mit Paul Hastings LLP verfolgt das Unternehmen rechtliche Schritte gegen Einzelpersonen und Organisationen, die sich angeblich an Marktmanipulationen beteiligen.
Christopher Gooding, unabhängiges Vorstandsmitglied und Mitglied des Prüfungsausschusses, identifizierte drei beteiligte Gruppen: aggressive ehemalige Insider, die vertrauliche Informationen nutzen, professionelle Leerverkäufer mit komplizierten Brokern, die illegale ungedeckte Leerverkäufe ermöglichen, und opportunistische Händler, die von falschen Medienberichten beeinflusst werden. Das Unternehmen hat Unterlassungsschreiben versandt und warnt vor bevorstehenden rechtlichen Schritten und regulatorischen Meldungen.
- None.
- Company facing alleged coordinated short-selling campaign
- Potential misuse of confidential information by former insiders
- Stock price and reputation reportedly damaged by market manipulation
Insights
Lottery.com's legal threats against alleged short sellers lack concrete evidence and specifics, creating uncertainty about the validity of these serious allegations.
This announcement represents a highly unusual and aggressive public stance against alleged short sellers. While companies occasionally address perceived market manipulation, Lottery.com's approach contains several concerning elements that merit careful scrutiny.
The release lacks specific evidence to substantiate the serious allegations of illegal naked short selling and market manipulation. Instead, it offers vague references to "trading metrics and forensic data" without providing any quantifiable details that would typically accompany such claims.
The company's assertion of a three-pronged attack involving former insiders, professional short-sellers, and opportunistic traders follows a common narrative template often deployed by companies facing stock pressure. However, the aggressive language threatening specific individuals without naming them or providing evidence raises questions about the tactical nature of this announcement.
Of particular note is the reference to "embittered insiders" allegedly using confidential information, which suggests potential internal governance issues. The mention of a Delaware legal action indicates there may be ongoing internal disputes that could be material to investors, though details are conspicuously absent.
The timing and tone of this announcement - particularly the confrontational language like "your days are numbered" - often correlates with companies under financial or operational pressure seeking to explain negative market sentiment. Without accompanying financial updates or operational progress reports, this singular focus on external actors warrants caution.
The absence of any statements from the CEO or CFO, with only an Audit Committee member speaking, is an unusual communication approach that raises questions about internal alignment on this strategy.
FORT WORTH, Texas, June 27, 2025 (GLOBE NEWSWIRE) -- Lottery.com Inc. (NASDAQ: LTRY, LTRYW) (“Lottery.com” or “the Company”), a leading technology company transforming the intersection of gaming, sports and entertainment, today confirmed that it is nearing legal proof of a coordinated and unlawful ‘short and distort’ campaign targeting the Company. In collaboration with its legal counsel, Paul Hastings LLP, the Company is actively pursuing all individuals and entities engaged in market manipulation intended to damage the Company’s share price and reputation.
Christopher Gooding, Independent Director of Lottery.com and a member of the Audit Committee with responsibility for legal affairs, issued the following statement:
“There is no doubt that there is an orchestrated campaign against Lottery. The trading metrics and forensic data we have access to clearly indicate both classic ‘short and distort’ tactics, and more seriously, a significant volume of naked short selling — illegal trades not backed by actual share ownership.
“These actors fall into three categories:
- “Aggressive and embittered insiders, who appear to be leveraging confidential or insider information from their historical relationships with Lottery.com for self-serving purposes. I outlined elements of these insiders to the judge in a Delaware action earlier this year;
- “Professional short-sellers, aided and abetted by complicit brokers — some of whom are actively engineering mechanisms to facilitate, or are willfully ignoring, illegal naked short activity; and
- “Opportunistic traders, influenced by blogs, shorting platforms, and “pay-to-publish” media articles that amplify false and defamatory narratives. These clearly represent the ‘distort’ component of the campaign. Numerous cease-and-desist letters have already been issued.
“Our message to these parties is unequivocal: We know who you are. We are rapidly securing irrefutable legal evidence of your involvement — including the brokers operating both in the U.S. and offshore in jurisdictions such as the Caribbean. We will pursue damages vigorously and refer the evidence to the appropriate regulatory authorities.
“Your days are numbered. We will shut you down, and the financial penalties imposed will far exceed the unlawful profits you have sought to extract from our shareholders.”
Lottery.com reiterates its commitment to protecting shareholder value, market integrity, and the long-term growth of its global operations.
About Lottery.com
The Lottery.com Inc. (NASDAQ: LTRY, LTRYW) family of brands — including Sports.com, Tinbu and WinTogether, comprise a unified ecosystem that integrates gaming, entertainment, and sports. Follow the Company on X, Instagram and Facebook.
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, expectations related to the investigation of short selling or potential naked short selling, including the Company’s analysis, its ability to take appropriate corrective action, or any potential investigations by regulators; 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 April 22, 2025, 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.
For more information, please visit www.lottery.com or contact our media relations team at press@lottery.com
FAQ
What legal action is Lottery.com (LTRY) taking against short sellers?
Who is involved in the alleged short-selling campaign against LTRY?
What evidence does Lottery.com have of market manipulation?
What actions has Lottery.com taken to address the short-selling campaign?
How is the short-selling campaign affecting Lottery.com stock?
