Lottery.com initiates investigation for potential short selling activities
Within the prior six months, Lottery.com stock has been listed on Nasdaq’s Regulation SHO Threshold Security List 16 times, indicating a ‘significant number’ of failures to deliver shares.
Key Points
- Lottery.com believes there may have been “dissemination of false information” relating to the company with the objective of driving down its stock price and damaging its business
- The company stated it is prepared to take “all actions necessary” to report suspected illegal activity to regulators and bring actions against anyone engaging in illegal activity
Lottery.com has officially launched an investigation into potential short selling activities in its stock, believing there may have been “dissemination of false information” relating to the company with the objective of driving down its stock price and damaging its business.
“The company will not tolerate the spreading of false information about the company or the manipulation of its stock,” Lottery.com said.
“It is prepared to take all actions necessary to report any suspected illegal activity to regulators and to bring actions against anyone that is engaging in illegal activity to safeguard shareholder interest and ensure market transparency.”
Within the last six months, Lottery.com stock has been listed on Nasdaq’s Regulation SHO Threshold Security List 16 times, which indicates a significant number of failures to deliver company shares.
Good to know: A lawsuit filed in Texas against Lottery.com was dismissed by the plaintiff Dawn Nettles on June 2, with Nettles instead choosing to “take a Nonsuit Without Prejudice Against All Parties Effective Immediately”
During that time, Security and Exchange Commission (SEC) data reportedly shows a high level of failures to deliver, including over 1.12 million shares on February 10, 2025 alone. Additionally, Lottery.com stock has continued to sustain “high borrow rates,” peaking at over 500% and suggesting an “elevated level of demand to short the stock.”
According to Lottery.com, the investigation builds on prior referrals already made by the company to certain regulators including Nasdaq MarketWatch, the SEC and the Department of Justice.
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