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FORT WORTH, Texas - Lottery.com Inc. (NASDAQ: LTRY, LTRYW), a digital lottery and sports entertainment technology company, announced that a lawsuit against the company has been voluntarily dismissed by the plaintiff. Dawn Nettles, who had filed the suit alleging unfounded claims against the company’s operations in Texas, submitted a notice of nonsuit without prejudice, effectively terminating the case. The company, currently valued at $38.58 million, has seen its stock surge over 200% year-to-date, according to InvestingPro data.
The suit, originally lodged in Harris County’s 333rd District Court and later moved to Business Court Division 11a, was dismissed on May 30, 2025, under Texas Rule of Civil Procedure 162. This development comes after the company faced allegations related to the April 2023 Lotto Texas drawing. Despite recent challenges, InvestingPro data shows the company maintains impressive gross profit margins of 61.22%, though it operates with short-term liquidity concerns.
Gregory Potts, Chief Operating Officer of Lottery.com, stated that the company has always shared the plaintiff’s advocacy for fair and transparent lottery operations in Texas. He noted that the voluntary dismissal indicates an absence of evidence of any wrongdoing by Lottery.com. Potts emphasized that the company has cooperated with all investigations and to his knowledge, there has been no finding of misconduct. According to InvestingPro, the company’s overall financial health score remains weak, with additional insights available to subscribers.
Potts further mentioned that defending the lawsuit would have diverted resources that are better used in enhancing shareholder value. He views the dismissal as a positive step towards rebuilding investor confidence and fostering sustainable growth for Lottery.com’s family of brands, which includes Sports.com, Tinbu, and WinTogether. The company’s current ratio of 0.52 indicates potential challenges in meeting short-term obligations, though its stock has shown strong momentum with a six-month return of nearly 360%.
Lottery.com’s forward-looking statements caution that they are subject to risks and uncertainties. These include ongoing reviews of the company’s internal accounting controls and the need to secure additional capital to continue operations. The company has also been working to regain compliance with Nasdaq Listing Rules and become current with its SEC reports.
The information presented in this article is based on a press release statement from Lottery.com Inc.
In other recent news, Lottery.com Inc. announced its acquisition of a majority stake in DotCom Ventures Inc. for $10 million, expanding its reach into the online ticketing market with platforms like Concerts.com and TicketStub.com. This move is part of Lottery.com’s strategy to integrate content, commerce, and live experiences, aiming to generate immediate revenue and enhance consumer experiences through platform integration. In a separate development, Marc Bircham has been appointed as an Executive Director on Lottery.com’s Board, bringing his extensive experience in sports management and international expansion. Bircham’s role is expected to support the company’s growth in sports media and entertainment. Meanwhile, Lottery.com faces a delisting notice from Nasdaq due to non-compliance with shareholder approval requirements related to its 2023 stock issuance plan. The company has 45 days to submit a compliance plan to Nasdaq. Additionally, Lottery.com continues its brand promotion through motorsport sponsorships, gaining exposure during recent events in Detroit. These developments reflect the company’s ongoing efforts to expand its business and navigate regulatory challenges.
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