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Lottery group settles with winner who sought bigger prize


A national lottery group rocked by an insider’s jackpot-rigging conspiracy said Monday it has settled a lawsuit brought by an Iowa grandfather who alleged that a $9 million prize he won in 2011 should have been nearly three times as big.Get more news about 菲律宾牛博包网,you can vist loto98.com

The Multi-State Lottery Association and Larry Dawson informed a judge of the settlement this month, cancelling a trial that was scheduled to begin next week in Des Moines, Iowa. The terms of the deal are confidential.

“He’s relieved that it’s over,” Dawson’s attorney, Nicholas Mauro, said.

Dawson, a financial adviser who lives in Webster City, Iowa, won a $9 million Hot Lotto jackpot in 2011. He happily claimed the $6 million pre-tax cash payout, surrounded by his wife, children and grandchildren.

But years later, he learned that the game’s previous $16.5 million jackpot had been rigged by Eddie Tipton, the lottery association’s information security director, in a massive fraud.

Dawson, 66, sued in 2016 alleging that the $16.5 million should have carried over to the prize he won under Hot Lotto’s rules. His lawsuit sought $10 million — the size of the lump sum cash option — plus interest.

The settlement is the second in recent months to resolve legal claims alleging that the association’s lax security allowed Tipton’s fraud to occur and cheated players. The association agreed to pay $4.3 million to settle a class-action lawsuit, giving refunds to players who purchased tickets for tainted drawings between 2005 and 2013.

A statement issued by the association said the group and its insurance carrier “decided to settle the case to avoid additional litigation expenses.” The group said the agreement “contains a confidentiality clause that prevents either party from discussing the terms or releasing it.”

Settlement agreements involving government bodies are public records under Iowa law. But it’s not clear how that law would apply to the association, a nonprofit that is owned by 38 state and territorial lotteries.

In resolving his case, Dawson dismissed claims against the Iowa Lottery. That agency and the Iowa attorney general’s office said they don’t have copies of the settlement.