Lottery.com has been struggling with a myriad of difficulties. Adding to the company’s woes, Amer Rustom, one of its directors, announced his departure after less than two months with the company.
Rustom Left the Company Five Days Ago
Amer Rustom, a member of Lottery.com’s board of directors, handed in his resignation five days ago, announcing his leave with an immediate effect. His exit comes less than two months after he was appointed as a director. For reference, Rustom joined the lottery giant in October, alongside Vladimir Klechtchev.
Rustom and Klechtchev joined the company because the Nasdaq required the lottery firm to have at least three members on its board. Prior to these appointments, the company had lost a bunch of experienced individuals, including its chief executive, Lawrence DiMatteo.
While Lottery.com refrained from providing further insight into what prompted Rustom’s departure, it is possible that it was prompted by the recent turmoil within the company. While this cannot be certain, it should be kept in mind that Richard Kivel, ex-chair of the company, cited the aforementioned problems as the reason for his personal resignation a month ago.
As of the time of this writing, Lottery.com is yet to announce who will succeed Rustom as a director.
Lottery.com has experienced a lot of setbacks. At the beginning of November, Kivel resigned from his position as chairman of the company, providing insights into what prompted his departure. He cited the postponed arrival of the money from Woodford Eurasia and the federal investigation into Lottery.com’s chief compliance officer, Dennis Ruggeri, as the main reasons for his decision.
Kivel accused the company’s higher-ups of jeopardizing its business and continuously hurting Lottery.com’s ability to recover. He claimed that he did his best to perform as a fiduciary and support the company’s business but noted that all of his efforts were obstructed by people aligned with problematic investors.
It should also be mentioned that when the investigations began, it was found out that Lottery.com had overestimated its cash holdings by $30 million, which hurt the company’s ability to pay wages. It also prevented the lottery operator from sending its Q2 report to the Securities and Exchange Commission, despite the risks of getting delisted from the Nasdaq.
When the trouble started, Lawrence DiMatteo, the company’s ex-chief executive, was quick to leave the company, marking the start of continued internal turmoil that saw the resignation of other notable personnel.