The parent company of the Lottery.com courier app is claiming $20m (£15m) in damages against White Diamond, a stock market research company.
SEGG Media is taking aim at White Diamond after the company published a report accusing the sports media and lottery courier operator of being a ‘fake company’ with ‘almost no money or business’.
White Diamond specifically took aim at SEGG’s recently announced deal with predictions market company Polymarket, one of the leaders in this space, accusing this of being ‘likely another of its manny scam press releases’.
The firm alleges that SEGG Media released a number of press releases in 2025 promoting events or partnerships that did not materialise, such as a planned relaunch of Lottery.com in Mexico.
This report was published on 10 June, with SEGG’s share price subsequently falling from $1.39 per share on that date to $0.82 per share as of 23 June. It has remained below $1 ever since.
“Healthy debate and differing investment opinions are part of the public markets,” said Robert Stubblefield, Chief Financial Officer and Interim Chief Executive Officer of SEGG Media.
“We respect the right of investors, analysts and commentators to express opinions regarding our business and prospects. However, we believe certain statements published about SEGG Media go far beyond opinion and constitute materially false representations of fact.”
SEGG’s lawsuit, filed in the Tarrant County District Court in Texas, accuses White Diamond of using a ‘short and distort’ scheme and making ‘false, misleading and disparaging statements’ about its business, resulting in company losses.
The accusations against White Diamond essentially amount to allegations of short selling – when a company shorts another company’s stock and then publishes allegations and reports about said company, leading to declines in stock prices and a return on the short.
SEGG Media accuses White Diamond of employing this tactic against it with malice, and of making wholly untrue statements. It has also added the firm’s Principal, Adam Gefvert, as a co-defendent after he shared White Diamond’s report and allegations on social media.
“Reasonable people may disagree about valuation, strategy or future performance,” Stubblefield continued. “What they cannot do is publish false statements with malice while omitting material publicly available information.
“We believe our shareholders and the investor public in general deserve accurate information upon which to make investment decisions, and we intend to vigorously defend both the Company and our shareholders against what we believe are false and disparaging attacks.”