White Diamond Research is facing a $20 million lawsuit after SEGG Media (formerly Lottery.com) opted to take the former company to court. According to the complaint, White Diamond published a report that sought to damage SEGG Media’s image for monetary gain.
White Diamond Published a Damning Report
The action follows a report by White Diamond, in which the company described SEGG Media as a “fake” company. The report alleged that SEGG Media had almost no business or cash and insisted that it had been leveraging fraudulent press releases to artificially bolster its price.
The damning report emphasized that SEGG Media’s stock increased from $0.66 to $2 in less than a month, based on expectations that the company would launch a predictions site called Sports.com Predict before the start of the 2026 FIFA World Cup. However, this hadn’t happened by the time of the report, causing White Diamond to suggest that investors who counted on SEGG’s betting expansion would lose faith.
The report also stated that SEGG’s alleged “long-running scheme of scam PRs and retail investor theft” has been reported to the SEC. The report furthermore criticized the company for not following up on deals and partnerships it had previously announced.
White Diamond’s report dealt a significant blow to SEGG Media’s stock, causing its share price to plummet. As of the time of this writing, the company’s shares are trading at $0.88 apiece.
In response to the damning report, SEGG Media has turned to legal remedies. The company has firmly rejected the serious allegations, insisting that they go beyond opinion and undermine its business with false facts. SEGG Media implied that White Diamond could be a short seller seeking to turn the former company’s woes into profit.
Robert Stubblefield, chief financial officer and interim CEO at SEGG Media, said that the report was malicious and sought to intentionally undermine his company. He emphasized that his company’s shareholders deserve reliable information upon which to make financial decisions. Because of that, he remained adamant that White Diamond’s report is a “false and disparaging” attack.
While SEGG Media acknowledged some serious issues tied to its previous CEO, it also stated that the individual is no longer affiliated with the company. SEGG Media vowed to continue growing its business while fighting off damning allegations, such as the ones in White Diamond’s report.