On February 6, 2024, Judge Jennifer L. Rochon of the United States District Court for the Southern District of New York dismissed with leave to amend a putative class action asserting claims under the Sections 10(b) and 14(a) of the Securities Exchange Act against a Special Purpose Acquisition Company (“SPAC”) and certain of its officers and directors, along with an individual action consolidated with the putative class action and asserting similar claims. In re Lottery.com, Inc. Securities Litigation, No. 1:22-cv-07111 (S.D.N.Y. Feb. 6, 2024), slip op. Plaintiffs alleged that defendants misrepresented certain financial information regarding the SPAC’s target company both before and after the merger. The Court held that, while certain challenged statements were adequately alleged to be false, plaintiffs failed to sufficiently allege scienter with respect to any alleged misrepresentation.
Source: Southern District Of New York Dismisses Putative Class Action Regarding SPAC Acquisition Of Online Lottery Company