An investor sued Lottery.com Inc. over concerns that backers of its blank-check merger with a special purpose acquisition company deliberately pushed a disastrous deal because it gave them a windfall at the expense of public shareholders.
The lawsuit seeks internal files from Lottery.com to investigate claims that sponsors of the SPAC it merged with, Trident Acquisition Corp., kept investors in the dark about “foundational” flaws in the lotto company’s business model. The company’s stock has allegedly crashed 95% since the deal closed.
The case is the latest in a wave of litigation prompted by SPAC mergers, called de-SPACs, which combine ...
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