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Lottery.com (SEGG) outlines SEC civil complaint and settlement talks over past conduct

Filing Impact
(High)
Filing Sentiment
(Neutral)
Form Type
8-K

Rhea-AI Filing Summary

Lottery.com Inc. reports that the U.S. Securities and Exchange Commission has filed a civil complaint in federal court naming certain former senior executives, the company, and a former SPAC CEO as defendants. The complaint concerns alleged securities law violations tied mainly to conduct between 2020 and mid‑2022, including around Lottery.com’s merger with Trident Acquisitions Corp.

The individuals formerly serving as executive officers are no longer employed or associated with the company. Lottery.com states it has significantly changed management, governance, and internal controls since mid‑2022 and that current leadership was not involved in the conduct described. The company has fully cooperated with the SEC and is engaged in non‑binding settlement discussions it believes are close to resolving the matter without material liability for the company, while maintaining that the complaint lacks merit as to the company and reserving the right to defend the case.

Positive

  • None.

Negative

  • SEC civil complaint introduces regulatory and legal risk as Lottery.com Inc. and others face claims seeking injunctive relief, disgorgement, and civil penalties related to conduct between 2020 and mid‑2022, despite the company’s view that any ultimate liability will not be material.

Insights

SEC civil action adds regulatory risk, though company sees limited liability.

The disclosure shows Lottery.com Inc. is a named defendant in an SEC civil complaint tied to alleged securities law violations from 2020 to mid‑2022, including around its SPAC merger. The SEC seeks injunctive relief, disgorgement, civil penalties, and other equitable remedies, which can be financially and operationally meaningful.

The company emphasizes that all individuals identified as former executive officers have departed and that current management was not involved. It also notes substantial changes to management, governance, and internal controls since mid‑2022, signaling an attempt to distance ongoing operations from the period at issue.

Lottery.com has fully cooperated with the SEC and entered non‑binding settlement discussions it describes as very close to resolution without material liability to the company. Actual impact will depend on the final terms, if any, of a settlement or court outcome.

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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

 

 

 

FORM 8-K

 

 

 

CURRENT REPORT

Pursuant to Section 13 OR 15(d)

of the Securities Exchange Act of 1934

 

Date of Report (Date of earliest event reported): January 22, 2026

 

Lottery.com Inc.

(Exact Name of Registrant as Specified in Its Charter)

 

Delaware   001-38508   No. 81-1996183
(State or Other Jurisdiction
of Incorporation)
  (Commission File
Number)
  (I.R.S. Employer
Identification No.)

 

5049 Edwards Ranch Rd., 4th Floor

Fort Worth, Texas

  76109
(Address of Principal Executive Offices)   (Zip Code)

 

(737) 787-3798

(Registrant’s Telephone Number, Including Area Code)

 

N/A

(Former Name or Former Address, if Changed Since Last Report)

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

 

Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
   
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
   
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
   
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

Securities registered pursuant to Section 12(b) of the Exchange Act:

 

Title of each class   Trading Symbol(s)   Name of each exchange on which registered
Common Stock, par value $0.001 per share   SEGG   The Nasdaq Stock Market LLC
Warrants to purchase one share of common stock, each at an exercise price of $2,300.00   LTRYW   The Nasdaq Stock Market LLC

 

 

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

 

Emerging growth company

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13 (a) of the Exchange Act.

 

 

 

 

 

 

Item 8.01 Other Events

 

Complaint filed by the SEC against Former Executives of the Company, the Company and a SPAC Executive.

 

On January 22, 2026, the U.S. Securities and Exchange Commission (the “SEC”) filed a civil complaint in the United States District Court for the Southern District of New York naming certain former senior executive officers of the Company, the Company and the former CEO of the SPAC Trident Acquisitions Corp as defendants (the “Complaint”). The Complaint asserts claims under various provisions of the federal securities laws and seeks injunctive relief, disgorgement, civil monetary penalties, and other equitable remedies.

 

The Complaint relates to alleged conduct occurring primarily between 2020 and mid-2022, including periods prior to and shortly following the Company’s merger with Trident Acquisition Corp. The individuals identified in the Complaint, who previously served as executive officers, are no longer employed by the Company and have no ongoing association or involvement with the Company in any capacity.

 

Since mid-2022, the Company has undergone substantial changes in management, governance, and internal controls. The Company’s current management team was not involved in the conduct alleged in the Complaint. The Company has fully cooperated with the SEC’s investigation and intends to continue full cooperation with the SEC in connection with this matter.

 

While the Company maintains the Complaint lacks merit against the Company and will defend against the lawsuit if necessary, the Company has entered into non-binding discussions with the SEC regarding a potential settlement. There can be no assurance that a final agreement will be reached, but the matter appears to be very close to being resolved without any material liability to the Company.

 

This disclosure is being made pursuant to Item 8.01 of Form 8-K and does not constitute an admission of liability by the Company or any other party.

 

Forward Looking Statements

 

This Current Report on Form 8-K (the “Form 8-K”) 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 Form 8-K, 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 Form 8-K 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 Form 8-K 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 all Nasdaq Listing Rules, the Company’s ability to remain current with its SEC reports, and those additional risks and uncertainties discussed under the heading “Risk Factors” in the Form 10-K filed by the Company with the SEC on April 22, 2025, as amended, and any 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 Form 8-K 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 Form 8-K.

 

 

 

 

SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

  Lottery.com Inc.
     
  By: /s/ Robert J. Stubblefield
  Name: Robert J. Stubblefield
  Title: Interim Chief Executive Officer

January 22, 2026

 

 

FAQ

What SEC action did Lottery.com Inc. (SEGG) disclose in this 8-K?

Lottery.com disclosed that the SEC filed a civil complaint in federal court naming certain former senior executives, the company, and a former SPAC CEO, alleging securities law violations and seeking injunctive relief, disgorgement, civil monetary penalties, and other equitable remedies tied to past conduct.

Which period of conduct is covered by the SEC complaint against Lottery.com (SEGG)?

The SEC complaint focuses on alleged conduct primarily between 2020 and mid‑2022, including periods before and shortly after Lottery.com’s merger with Trident Acquisitions Corp. This timeframe precedes the company’s current management team and its later governance and internal control changes.

Are the former executives named in the Lottery.com (SEGG) SEC complaint still with the company?

No. Lottery.com states that the individuals identified in the SEC complaint previously served as executive officers but are no longer employed and have no ongoing association or involvement with the company in any capacity, underscoring a clean break from the leadership tied to the alleged conduct.

How has Lottery.com (SEGG) responded to the SEC complaint?

Lottery.com reports it has fully cooperated with the SEC’s investigation and continues to do so. The company maintains the complaint lacks merit as to the company but indicates it will defend the lawsuit if needed, while simultaneously pursuing non‑binding settlement discussions with the regulator.

Is Lottery.com (SEGG) close to settling the SEC complaint and what is the expected impact?

Lottery.com says it has entered non‑binding settlement discussions with the SEC and that the matter appears very close to being resolved without any material liability to the company. However, it cautions there can be no assurance that a final agreement will be reached.

Did Lottery.com (SEGG) change management after the period covered by the SEC complaint?

Yes. Lottery.com states that since mid‑2022 it has undergone substantial changes in management, governance, and internal controls. The current management team was not involved in the conduct alleged in the complaint, signaling an effort to strengthen oversight and separate from prior practices.
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