Federal Court Dismisses All of Remaining Claims Against SEGG Media
Rhea-AI Summary
SEGG Media (NASDAQ: SEGG) announced that the U.S. District Court for the Middle District of Florida dismissed the remaining claims in legacy litigation on January 28, 2026, after previously dismissing all federal claims. The dismissal was without prejudice for lack of subject matter jurisdiction, and the case was ordered closed.
The Company characterized the decision as a procedural jurisdictional outcome. Management said the ruling reduces legacy litigation overhang while the new team focuses on executing its strategy, developing core assets (Sports.com, Concerts.com, TicketStub.com, Lottery.com), pursuing cash-generative acquisitions, and driving revenue growth.
Positive
- Court dismissed remaining claims on Jan 28, 2026
- All federal claims previously dismissed, reducing federal litigation exposure
- Company states renewed management focus on core assets and growth
Negative
- Claims dismissed without prejudice, allowing potential state-court refiling
- Remaining state-law claims were not adjudicated on the merits
News Market Reaction – SEGG
On the day this news was published, SEGG gained 12.04%, reflecting a significant positive market reaction. Argus tracked a peak move of +13.7% during that session. Argus tracked a trough of -10.0% from its starting point during tracking. Our momentum scanner triggered 14 alerts that day, indicating notable trading interest and price volatility. This price movement added approximately $3M to the company's valuation, bringing the market cap to $27M at that time.
Data tracked by StockTitan Argus on the day of publication.
Market Reality Check
Peers on Argus
SEGG gained 41.48% while only one peer (ROLR) showed momentum, up about 4%. Other peers had mixed, smaller moves, indicating SEGG’s move is stock-specific rather than sector-driven.
Historical Context
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Jan 27 | Corporate rebranding | Neutral | -12.3% | Company changed corporate name to reflect broader media and gaming focus. |
| Jan 20 | Capital raise | Positive | +42.2% | Closed registered direct offering to fund working capital and acquisitions. |
| Dec 23 | Operational milestone | Positive | -6.7% | Reported strong viewership from Super League Kerala live streaming partnership. |
| Dec 11 | Funding agreement | Positive | -5.2% | Closed $2.5M securities purchase to fund growth and acquisition initiatives. |
| Dec 01 | Leadership changes | Neutral | -6.1% | Board replaced CEO and appointed interim leadership to drive growth plans. |
Recent history shows mixed reactions: capital-raising news drew a strong positive move, while several operational or strategic updates with positive tone saw negative price reactions.
Over the past few months, SEGG has undergone significant strategic and corporate changes. A December 2025 funding agreement and streaming milestone both carried growth narratives but were followed by share price declines. Leadership changes on December 1, 2025 also coincided with a negative reaction. In contrast, a January 20, 2026 registered direct offering linked to funding acquisitions saw a strong positive move. The current litigation dismissal fits into management’s broader cleanup and repositioning after these capital and governance actions.
Market Pulse Summary
The stock surged +12.0% in the session following this news. A strong positive reaction aligns with the favorable litigation outcome, which removed remaining federal claims and left state-law issues dismissed without prejudice. The move comes after prior mixed market responses to strategic and funding news, where several positive-sounding announcements saw negative reactions. With shares still trading below the 200-day MA of $4.73, investors previously focused on balance sheet and governance risks may have viewed this legal cleanup as a meaningful de-risking step.
Key Terms
subject matter jurisdiction regulatory
supplemental jurisdiction regulatory
counterclaims regulatory
AI-generated analysis. Not financial advice.
FORT WORTH, Texas, Jan. 29, 2026 (GLOBE NEWSWIRE) -- SEGG Media Corporation, formerly Lottery.com Inc., (NASDAQ: SEGG, LTRYW)(the “Company” or “SEGG Media”), the global sports, entertainment, and gaming group continues its transparent and material transformation as it announces today that the United States District Court for the Middle District of Florida (the "Court") dismissed, without prejudice, the remaining claims in a legacy litigation styled Lottery.com, Inc. f/k/a Autolotto, Inc., et al. v. John J. Brier, Jr., et al., Case No. 8:23-cv-2594 (M.D. Fla.).
In its January 28, 2026 order, the Court granted, in part, the Company’s renewed motion to dismiss for lack of subject matter jurisdiction and declined to exercise supplemental jurisdiction over the defendants’ remaining state-law counterclaims. The Court overruled all objections made by the defendants to the Magistrate Judge’s findings and directed that the case be closed.
The Court’s ruling follows the prior dismissal of all federal claims in the action. With no federal claims remaining, the Court determined that it lacked subject matter jurisdiction to adjudicate the remaining state-law claims and dismissed those claims without prejudice, meaning they were not adjudicated on the merits.
“We are delighted with this outcome and agree with the Court’s decision and its application of well-established jurisdictional principles,” said Gregory Potts, SEGG Media Chief Operating Officer.
The Company views this ruling as a procedural resolution consistent with established federal jurisdictional principles. With yet another dismissal in legacy litigation matters, the new management team at SEGG Media continues to remain focused on executing its business strategy, further developing its core business assets (Sports.com, Concerts.com, TicketStub.com and Lottery.com), driving revenue growth, completing on cash-generative strategically-targeted acquisitions and creating long-term shareholder value.
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 and Lottery.com. Focused on immersive fan engagement, ethical gaming and AI-driven live 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 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, 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 additional information, visit www.seggmediacorp.com or contact media relations at media@seggmediacorp.com
FAQ
What did SEGG announce about the January 28, 2026 court order?
Does the Jan 28, 2026 dismissal end all litigation risk for SEGG (NASDAQ: SEGG)?
How did SEGG management describe the court ruling on January 28, 2026?
What immediate business priorities did SEGG cite after the court ruling?
Will the January 28, 2026 dismissal affect SEGG’s strategic transactions or revenue plans?
