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McCune Wright Arevalo, LLP Files Class Action Lawsuit on Behalf of Illinois Lottery Scratch-Off Retailers

McCune Wright Arevalo, LLP, is pursuing a class action lawsuit against Northstar Lottery Group, the private company that managed the Illinois state lottery system, seeking recovery for actions taken by Northstar to reduce the amount of winnings paid out to scratch-off lottery ticket purchasers and retailers. According to the suit, the Northstar Lottery Group scheme involved discontinuing certain scratch-off games when Northstar determined that grand prizes and other large prizes had not yet been paid, thereby cheating purchasers and retailers out of winnings and compensation by ensuring that grand prizes and other large prizes would not be paid.

The lawsuit alleges, as initially reported by the Chicago Tribune, that Northstar Lottery Group took over the management of the Illinois lottery in 2011, and began a scheme of advertising very large cash prizes through a number of new scratch-off ticket games. But by then discontinuing games when it determined that the grand prizes and other large prizes had not yet been paid, the company increased its own profits and ensured that many of the advertised prizes would never be paid out. In one study, the Lottery was found to have paid less than 60% of the grand prizes advertised, a lower rate than in other state lotteries and lower than the Illinois Lottery payout rate under previous management. According to the suit, this cheated lottery ticket purchasers, but also ticket retailers. Ticket retailers — like gas stations, liquor stores, and convenience stores — earn a commission on lottery ticket sales and earn bonuses for selling or redeeming winning tickets. A grand prize can lead to a retailer bonus of hundreds of thousands of dollars.

If you have been a participating lottery retailer during from 2010 to the present, contact McCune Wright Arevalo, LLP to learn more about your potential participation in this class action lawsuit to recover financial damages.

Call us for a free consultation about your legal matter at 909.557.1250 or fill out the form below.