Federal Appellate Court Unanimously Affirms Lower Court’s Dismissal With Prejudice of All Claims Against SEGG Media

Rhea-AI Summary

Market Context

0.93% was the 24-hour decline after Sports.com Predict’s public opening, offering a historical compa...

Analysis

0.93% was the 24-hour decline after Sports.com Predict’s public opening, offering a historical comparison. The appellate ruling favors the company, while its non-precedential status and rehearing possibility preserve procedural uncertainty.

Key Figures

Damages sought: $1.9M Causes of action: 4 causes Appellate panel: 3 judges +2 more

5 metrics

Damages sought $1.9M McTurk lawsuit against the company

Causes of action 4 causes Original fraud lawsuit

Appellate panel 3 judges Eleventh Circuit review

Opinion date Aug. 6, 2026 Eleventh Circuit opinion

Petition period 21 days Panel rehearing or rehearing en banc

Historical Context

5 past events · Latest: Aug 04 (Neutral)

Pattern 5 events

Date	Event	Sentiment	24h Move	Catalyst
Aug 04	Strategic program	Neutral	-1.3%	Company outlined focused investment across three growth platforms.
Jul 29	Partnership announcement	Positive	-6.2%	International Gaming Alliance became the first global affiliate-program partner.
Jul 28	Acquisition discussions	Positive	-11.0%	Company entered exclusive discussions for UK gaming and casino assets.
Jul 28	Lawsuit amendment	Negative	-11.0%	Company amended litigation and increased damages sought against research defendants.
Jul 22	Platform expansion	Positive	-0.9%	Sports.com Predict opened publicly with expanded prediction-market coverage.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Pattern Detected

Recent news events were followed by negative 24-hour reactions, including after strategic and expansion announcements.

Key Terms

dismissal with prejudice, rehearing en banc, non-precedential, forward-looking statements

4 terms

dismissal with prejudice regulatory

"affirmed the District Court’s dismissal with prejudice of all claims"

A dismissal with prejudice is a court ruling that ends a lawsuit permanently and prevents the same claim from being filed again. For investors, it matters because it removes ongoing legal uncertainty and potential future liability for the company, much like locking a file cabinet so a problem can’t be reopened; that clarity can affect a company’s risk profile, legal costs and valuation.

rehearing en banc regulatory

"petition for panel rehearing or rehearing en banc"

A rehearing en banc is a request for the full appeals court, rather than a smaller three-judge panel, to reconsider a court decision in a case. Think of it like asking the whole board of directors to review a committee’s ruling: it can overturn, narrow, or confirm earlier rulings and can change the legal outcome or timeline for companies involved in litigation, which may affect financial results, regulatory obligations, or market uncertainty.

non-precedential regulatory

"is non-precedential under Eleventh Circuit rules"

A non-precedential decision is a ruling, opinion, or administrative action that is published for that case but is not intended to serve as binding guidance for future cases. Think of it like a teacher grading one student's homework with comments that don’t set the classroom rule for everyone; investors care because such rulings can resolve a single dispute but carry less legal or regulatory weight when assessing how similar issues might be treated later, affecting risk and predictability.

forward-looking statements regulatory

"statements that constitute “forward-looking statements”"

Forward-looking statements are predictions or plans that companies share about what they expect to happen in the future, like estimating sales or profits. They matter because they help investors understand a company's outlook, but since they are based on guesses and assumptions, they can sometimes be wrong.

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The ruling effectively ends McTurk’s lawsuit that sought approximately $1.9M in damages against the Company.

FORT WORTH, Texas, Aug. 10, 2026 (GLOBE NEWSWIRE) -- Sports Entertainment Gaming Global Corporation, (NASDAQ: SEGG, LTRYW) (the “Company” or “SEGG Media”), the global sports, entertainment, and gaming group, secured a definitive legal victory as the United States Court of Appeals for the Eleventh Circuit unanimously affirmed the District Court’s dismissal with prejudice of all claims seeking approximately $1.9 million in damages against the Company and its former chief executive officer for fraud.¹   By upholding the dismissal with prejudice, the appellate court has permanently barred plaintiffs from re-filing or pursuing these allegations in any court, effectively bringing conclusive end to the protracted litigation.

As disclosed by the Company in a press release dated February 27, 2025, the original lawsuit², which alleged four causes of action found in fraud (Fraudulent Misrepresentation, Negligent Misrepresentation, Aiding and Abetting Fraud and Conspiracy to Commit Fraud) was initially tossed out by the U.S. District for the Southern District of Florida.   The lower court, at that time, ruled that plaintiffs failed to state any plausible legal claim. In its review, the three-judge appellate court panel agreed entirely, finding that the lower court acted correctly and that the plaintiffs’ claims failed to meet the strict pleading standards and therefore the allegations lacked any legal or factual merit.

“This ruling confirms that these claims were never backed by the facts or law. I want to thank our legal team for successfully defending the Company," said Gregory Potts, SEGG Media Chief Operating Officer. “Resolving yet another legacy matter lets us keep our operational and financial resources concentrated on the strategic program outlined on August 4.”

SEGG Media remains focused on executing that strategic program — concentrating investment behind its priority growth platforms, including Veloce Media Group, Sports.com Predict and its global affiliate lottery model, and applying disciplined capital allocation across its broader portfolio.

The appellate court’s opinion is marked “not for publication” and is non-precedential under Eleventh Circuit rules.³ Plaintiffs retain the right for twenty-one days from the date the court’s opinion is filed to petition for panel rehearing or rehearing en banc under the Federal Rules of Appellate Procedure. The Company cannot predict whether such a petition will be filed or its outcome.

About SEGG Media Corporation

SEGG Media (Nasdaq: SEGG, LTRYW) is a global sports, entertainment, and gaming group operating a portfolio of digital assets including Sports.com, Concerts.com, TicketStub.com, Lottery.com, and Veloce Media Group. Focused on immersive fan engagement, ethical gaming, and technology-driven fan experiences, SEGG Media is redefining how global audiences interact with the content they love.

Important Notice Regarding 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 press release, 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, including but not limited to whether Plaintiffs seek further appellate review of the decision described herein and the outcome of any such review, the Company’s ability to secure additional capital resources, the Company’s ability to realize the anticipated benefits of its strategic program announced on August 4, 2026, and those additional risks and uncertainties discussed under the heading “Risk Factors” in the Company’s Annual Report on Form 10-K filed with the SEC on July 11, 2026, and the other documents filed, or to be filed, by the Company 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.

_____________________________
¹ In the case styled Sharon A. McTurk, et al. v. Lottery.com, Inc. and Matthew McGahan, No. 25-10691 (11th Cir. Aug. 6, 2026), on appeal from the United States District Court for the Southern District of Florida, (Case No. 0:24-cv-60993-MD).
² Sharon A. McTurk, et al. v. Lottery.com, Inc. and Matthew McGahan (Case No. 24-60993-CIV-DAMIAN).  
³ https://law.justia.com/cases/federal/appellate-courts/ca11/25-10691/25-10691-2026-08-06.html

This press release was published by a CLEAR® Verified individual.

For additional information

SEGG Media
press@seggmedia.com
737-587-3391

SEGG Investors
ir@seggmedia.com
737-787-3891