Case Explained: SHARON A. MCTURK RUTHERFORD ENTERPRISES, LLC. SJB SOLUTIONS, LLC. ASTRA SUPPLY CHAIN, LLC v. LOTTERY.COM, INC MATTHEW MCGAHAN

Court: United States Court of Appeals for the Eleventh Circuit Filed: 2026-08-06 Docket: 0:24-cv-60993-MD The eleventh-circuit affirmed the district court’s dismissal of the plaintiffs’ fraud-based claims against Lottery.com, Inc. and Matthew McGahan. The court held that the complaint failed to state a claim because it did not plead the circumstances constituting fraud with the particularity required by Federal Rule of Civil Procedure 9(b). The court applied the standard of review de novo, accepting the complaint’s factual allegations as true but construing them in favor of the plaintiff. Under this standard, all theories asserted—fraudulent misrepresentation, negligent misrepresentation, aiding and abetting fraud, and conspiracy to commit fraud—required particularized pleading because they sounded in fraud. The court emphasized that Rule 9(b) demands plaintiffs identify the “who, what, when, where, and how” of the alleged fraud. Specifically, the court found the complaint deficient regarding the element of reliance. While the plaintiffs asserted they relied on a letter from the defendant CEO to transfer funds, the court ruled these were “threadbare assertions” that failed to explain the manner in which the representations misled them or how the specific terms of the letter (such as conditions regarding board approval) influenced their decision. The complaint lacked details on how the letter was presented, which entities transferred money, and the causal link between the alleged misrepresentation and the transaction. As a practical consequence, the plaintiffs’ action remains dismissed with prejudice. The court noted that the dismissal was proper because the plaintiffs, represented by counsel, failed to request leave to amend their complaint or file an amended complaint in response to the motion to dismiss, despite having the opportunity to do so under Federal Rule of Civil Procedure 15. Do It For The Case Law is a news reporting service. Nothing in this episode constitutes legal advice.