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Tuesday, May 28, 2024

Lottery.com Shareholders Initiate Urgent Inquiry into Chairman Matthew McGahan’s Conduct

Shareholders of Lottery.com Inc. (NASDAQ: LTRY) have embarked on an independent probe into the company’s operations following revelations of significant mismanagement. The transition of Matthew McGahan from an independent director to roles including Chairman, CEO, President, and Company Secretary, which contravenes NASDAQ regulations, has cast a shadow over the firm’s transparency and ethical standing.

Alarmingly, under McGahan’s leadership, it has been revealed that Lottery.com’s management and its external advisors were allocated a whopping 3,253,147 shares, a move that starkly breaches NASDAQ guidelines and the internal statutes of Lottery.com Inc., leading to a [dilution of shareholder value] that has stakeholders in uproar, calling for prompt measures.

The infractions are detailed as follows:

  1. Infringement of Rule 5635(d): The LTRY board authorised the distribution of over 3,253,147 shares to its management and external consultants, constituting an alarming 44.2% of LTRY’s total outstanding shares. This act flagrantly violates Rule 5635(d) which mandates shareholder approval for any issuance exceeding 20% of the outstanding shares or voting rights.
  2. Breach of the Lottery.com 2021 Incentive Plan: The share allocation was executed in blatant disregard of the Lottery.com 2021 Incentive Plan stipulations. The volume of distributed shares considerably surpasses the plan’s limitations, making the action unauthorised and invalid.
  3. Unwarranted Shares to External Advisors: A staggering 300,000 shares were assigned to LTRY’s external consultants without any defensible rationale for such a significant allotment. Moreover, the absence of clarity on the agreements with these consultants and their outstanding obligations poses serious questions about the legitimacy and intent behind these allocations.

A representative for the shareholders stated: “Considering these grave violations, we, the shareholders, demand immediate action to deny the registration of LTRY shares to the members of the Board of Directors and external advisors named in the S-3 Form dated February 12, 2024. These individuals include Matthew McGahan, Robert Stubblefield, Gregory Potts, Barney Battles, Christopher Gooding, Paul S. Jordan, Tamer Hassan, Amar Ali Law PLLC, Randall Lanham, Esq., Andrew R. Korn, Esq., and Andrey Nikitin who was previously convicted of fraud and served time in jail as Andrey Ryjenko and is now hiding behind his wife’s surname.”

Lottery.com shareholders are adamant about their right to seek all legal avenues if these shares are illicitly awarded to the mentioned individuals. They demand complete accountability, transparency, and compliance with corporate governance norms from Lottery.com Inc.

An exhaustive investigation is underway into McGahan’s history, focusing on his involvement in PPE supply to the UK Government during the Covid-19 crisis and his directorial position in a UK charity, Mask Our Heroes.

The outcomes of this scrutiny, conducted by an autonomous financial intelligence firm, will be disclosed imminently.

About Lottery.com Inc.

Lottery.com Inc. is a leading provider of online lottery services, offering players a convenient and secure platform to participate in various national and international lotteries. With a commitment to transparency and integrity, Lottery.com Inc. strives to provide an exceptional lottery experience for its users. It is currently listed on NASDAQ.


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