$4.3M Lottery Scam Settlement Will Benefit Past Players

Millions of lottery players may get a share of a $4.3 million settlement with the Multi-State Lottery Association (MSLA) over claims of lotto rigging.

The settlement, announced on July 22, was a result of a large scam operation perpetrated by Eddie Tipton, a former MSLA IT director. 

A class action lawsuit was filed in January 2017 by Dale Culler against the MSLA alleging that it did not prevent lottery games from being rigged, which then cheated hundreds of thousands of people from a chance of winning a jackpot prize.

The lottery class action lawsuit claimed that Tipton installed software on the generators which picked the random numbers, which stopped them from producing true random numbers.

Tipton worked alongside his brother and a friend to rig the software to provide predictable numbers on three specific days and that nine rigged drawings took place between November 2005 and May 2013, according to the class action lawsuit.

Tipton was recorded on surveillance video purchasing a lottery ticket in December 2010 that was subsequently worth $16 million, according to the lottery class action lawsuit. Tipton was sentenced to 25 years in prison for his actions in the lottery scam. 

The lotteries that were involved in the scam operated by Tipton were Hot Lotto, Colorado Lotto, Wisconsin Megabucks and Kansas 2X2, according to the lottery class action lawsuit.

According to the Des Moines Register, “The settlement will refund the cost of tickets purchased for nine specific drawing dates for games sold in 33 states, the Virgin Islands, Puerto Rico and Washington, D.C., between Nov. 23, 2005, and May 23, 2013.”

A website will soon be set up to educate the public on how to file a claim.

The Des Moines Register article also states that proof of purchase will not be needed to claim up to 10 non-winning tickets, “but settlement administrators have the right to request verification to prevent fraud.”

“Refunds will vary based on the value of the ticket, whether the claimant has proof of purchase, and the number of valid claims submitted,” according to the Des Moines Register.

Tipton hijacked computer software in Colorado, Wisconsin, Iowa, Kansas and Oklahoma and the scam totaled more than $24 million in prizes, according to records from the court.

The lottery class action lawsuit claims that the plaintiff kept $45 in lottery tickets that he had bought in the Hot Lottery drawing and that he keeps records of all of the lottery games that he participates in.

If the settlement is approved, the plaintiff could receive a $20,000 incentive payment.

Top Class Actions will post updates to this settlement as they become available. For the latest updates, keep checking TopClassActions.com or sign up for our free newsletter. You can also receive notifications when this article is updated by using your free Top Class Actions account and clicking the “Follow Article” button at the top of the post.

Culler is represented by Jerry Crawford, Nick Mauro and Blake Hanson of Crawford & Mauro Law Firm and Gary Dickey of Dickey & Campbell Law Firm PLC.

The Rigged Lottery Class Action Lawsuit is Dale Culler v. Multi-State Lottery Association, in the Iowa District Court for Polk County.

UPDATE: September 2019, the lottery scam class action settlement is now open. Click here to file a claim.

UPDATE 2: On March 17, 2020, Top Class Actions viewers started receiving checks in the mail worth up to $10 from the lottery scam class action settlement. Congratulations to everyone who filed a claim and got PAID.

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