Lottery.com’s risk of being removed from the Nasdaq hub is imminent. This is because the company has not filed its financial reports on time. In addition, Lottery.com is facing a class action lawsuit filed by irate investors. The investors claim that the company has made false and misleading statements and therefore they want to be compensated.
Lottery.com has two options to return to Nasdaq rules. They can file a Form 10-Q by August 31, 2019, or they can file a compliance plan. If they choose the latter option, Nasdaq will grant them a 6-month extension added to the expiration date of Form 10-Q.
SEC and lottery .com
The SEC says Lottery.com can make no guarantees about when their Form 10-Q will be filed. They said the form would be filed as soon as possible to bring back compliance.
The U.S. Securities and Exchange Commission claims that Lottery.com failed to file its June 30 financial statements. They say this is because the company could not file its quarterly Form 10-Q report.
Because they did not file the financial reports with the SEC on time, Lottery.com was informed by Nasdaq last week that they are not in compliance with their listing rules.
A lawsuit against Lottery.com was filed in the U.S. District Court for the Southern District of New York. It was filed on behalf of all investors who purchased Lottery.com shares between November 15, 2021 and July 29, 2022. The lawsuit alleges that Lottery.com violated the Securities Exchange Act of 1934 by wrongfully selling securities.