Allegations of Mismanagement and Market Manipulation Plague Inc.: Shareholders Demand Accountability

Last Updated on: 18th April 2024, 11:50 am

In a saga of corporate intrigue, Inc. finds itself embroiled in a controversy surrounding alleged mismanagement, conflicts of interest, and market manipulation. Shareholders, representing a substantial stake in the company, have raised serious concerns about the conduct of key executives and board members, casting a shadow over the once-promising enterprise.

On April 12, 2024, a coalition of shareholders led by Nicola Usaty, collectively holding 55,670 shares of Inc., made a decisive move. They conducted an exhaustive due diligence review of Lottery’s governance structure, focusing on developments since the appointment of Matt McGahan as Chairman of the Board in November 2022. Their findings prompted a letter addressed to the Board of Directors, urging the immediate removal of Matt McGahan from his roles as Chairman, CEO, President, and Secretary of the company. Many other shareholders have started to join the petition as Conflict of Interest and Suspected Market Manipulation started to emerge.

Central to the shareholders’ concerns are allegations of a glaring conflict of interest involving Matthew McGahan and Barney Battles, key figures within Inc. The shareholders suspect potential market manipulations orchestrated by members of the Board of Directors, further exacerbating the company’s tumultuous situation.

A pivotal moment in Lottery’s recent history revolves around a proposed investment from OneStream Invest Ltd. (OneStream), a UK-based company. Despite initial agreements and shareholder approval, Lottery seemingly veered away from OneStream’s offer in favor of an investment from Prosperity Investment Management (Prosperity) through UCIL’s financing vehicle. The abrupt stock price surge following the announcement of the Prosperity deal raised eyebrows, only to plummet shortly afterward. Four months down the line, Lottery has yet to receive any financing from Prosperity or any other investors, leaving shareholders disillusioned and suspicious.

The Board then declined an alternative investment proposal of $10 million from Woodford Finance (Woodford) in January 2024. As Lottery grapples with its financial woes, the specter of bankruptcy looms large. Woodford, poses a significant threat, with the potential to seize control of Lottery’s assets in the event of default. The company’s assets, including valuable domain names, serve as collateral for a loan from Woodford, intensifying the stakes of the ongoing power struggle.

In their quest to safeguard shareholder rights and uncover the truth, the coalition of concerned shareholders has submitted a comprehensive list of questions to the Lottery Board.

Nikola Usaty, one of the shareholders, questions Lottery Board decisions with the following comment:

“We want to know why did the Board turn down offers from legitimate investors like One Stream and Woodford, opting instead for a deal with Prosperity and UCIL? The latter being directly connected Matthew McGahan and Barney Battles. We have suspicions about who profited from the surge in Lottery’s stock price following the UCIL deal announcement, despite the absence of actual investment funds. We are determined to uncover the truth and hold accountable those who may have exploited the situation.” Inc. stands at a crossroads, grappling with allegations of corporate malfeasance and financial instability. As the investigation into governance practices and market dealings unfolds, shareholders remain vigilant, determined to unearth the truth and restore integrity to the embattled company. The coming days will undoubtedly be pivotal, shaping the fate of Lottery and its stakeholders amidst a backdrop of uncertainty and scrutiny.

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