Lottery.com Under Fire Again: Fraud and Misrepresentation Lawsuit
Date: 2024-08-19 Author: Robert Beloved Categories: EVENTS
Lottery.com has been at the center of several scandals over the past few years, some of which have resulted in lawsuits. Now, the company is under fire again: a fraud and misrepresentation lawsuit has been filed against it, according to a Florida supplier.
The lawsuit, filed by Astra Supply Chain President Sharon A. McTurk, implicates Lottery.com and its CEO Matthew McGahan, according to a report published by NEXT.io.
According to the documents, Astra Supply Chain claims that a Boca Raton, Florida, man named Ronald Farah offered them a unique investment opportunity in exchange for funding. It is important to note that it is not yet known whether Farah had any formal relationship with Lottery.com or what role he played in the company.
Farah reportedly passed away last September. However, the plaintiff alleges that it was his actions and offer to purchase Lottery.com shares at a below-market price that played a key role in what followed.
Initially, in September last year, Astra Supply Chain wired $500,000 to a company owned by then-Lottery.com CEO Sohail Qurashi, SAS Management. However, Astra's total investment was $1.9 million.
According to the plaintiff, a letter allegedly signed by McGahan proposed that McTurk form a company called SMRF Holdings and promised to receive approximately 3 million common shares, "subject to agreed-upon terms and conditions, in consideration for your work or services to Lottery.com."
Lottery.com's Response: Motion to Dismiss
In response to the allegations, Lottery.com filed a motion to dismiss the lawsuit. The company and its CEO, McGahan, argue that the plaintiff did not base his investment solely on the letter in question. Lawyers representing Lottery.com explained, "First, the letter is not a valid contract because it suggests the existence of separate 'agreed terms and conditions.'"
They also added, "Plaintiffs could not reasonably rely on terms they did not know. The letter was part of the card rather than a separate document."
In addition, Lottery.com claimed that while it received the funds, the fraud and deceptive promises were unique to Farah.
The case is currently pending in the District Court of Florida.
