Texas Class-Action Suit Against Lottery.com Voluntarily Dismissed by Plaintiff
- Voluntary dismissal of class-action lawsuit removes legal uncertainty for the company
- No findings of wrongdoing against the company in investigations
- Company can now redirect resources from legal defense to growth initiatives
- Previous existence of legal challenges may have impacted company reputation
Insights
The voluntary dismissal removes a significant legal risk for Lottery.com, strengthening its position despite ongoing regulatory scrutiny in the lottery industry.
The voluntary dismissal of this class-action lawsuit represents a meaningful legal victory for Lottery.com. The plaintiff's decision to take a "Nonsuit Without Prejudice" under Texas Rule of Civil Procedure 162 effectively terminates the immediate legal proceedings, though it's important to note that "without prejudice" means the plaintiff technically retains the right to refile within certain limitations.
This development is particularly significant given the nature of the allegations, which appeared to question the company's operational integrity in Texas. The COO's statement that there has been "no finding against the Company of any of the activities claimed" suggests that after investigation, the claims lacked substantive merit - often a catalyst for plaintiffs to voluntarily withdraw litigation.
The timing is noteworthy as it comes amid what appears to be an ongoing regulatory examination of the April 2023 Lotto Texas drawing. The company's assertion of full cooperation with investigations indicates proper regulatory compliance posture, which is crucial in the highly regulated lottery industry.
From a corporate governance perspective, the leadership's decision to avoid allocating resources to continued defense demonstrates prudent financial management. Legal proceedings of this nature typically require substantial financial resources and management attention, creating opportunity costs that divert focus from core business operations.
This dismissal removes a significant contingent liability that would have otherwise created uncertainty in the company's financial and operational outlook. For Lottery.com, which operates in a trust-dependent industry, the resolution of allegations questioning its operational integrity is particularly valuable for maintaining both regulatory relationships and consumer confidence.
FORT WORTH, Texas, June 02, 2025 (GLOBE NEWSWIRE) -- Lottery.com Inc. (Nasdaq: LTRY, LTRYW) (“Lottery.com” or the “Company”), a leading technology company in digital lottery and sports entertainment, was notified that Plaintiff Dawn Nettles filed a notice on May 30, 2025 that she is “taking a Nonsuit Without Prejudice Against All Parties Effective Immediately” (the “Notice”) in Case No. 25-BC11A-0026; Dawn Nettles vs. Rook TX LP, Gary N. Grief, Lottery.com Inc. (The “Suit”).
The suit was originally filed in the 333rd District Court in Harris County, Texas and later moved to Business Court Division 11a. It made a series of unfounded allegations against Lottery.com’s operations and conduct in Texas. The Notice, under Texas Rule of Civil Procedure 162, terminated the case effective immediately.
Following the dismissal, Gregory Potts, Lottery.com Chief Operating Officer, said:
“I had the opportunity to meet Ms. Nettles earlier this year when I appeared before the Texas Senate Finance committee. She is a long-time advocate for the fair and transparent operation of Texas lottery games, a belief shared by our company, Lottery.com. We believe the decision to seek a voluntary dismissal speaks to the lack of any evidence that Lottery.com was engaged in any wrongdoing. We have fully cooperated with all investigations into the April 2023 Lotto Texas drawing, and to my knowledge, there has been no finding against the Company of any of the activities claimed in this lawsuit. Defending the Company in this case would have required us to allocate resources that are better spent on delivering shareholder value. This marks another important step as we continue to rebuild investor confidence and position the Lottery.com family of brands for sustainable growth."
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.
For more information, please visit www.lottery.com or contact our media relations team at press@lottery.com.
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FAQ
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