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MUSL paid $1.5 million to settle lawsuit over rigged jackpot

Dec 9, 2019, 8:42 am

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Insider BuzzInsider Buzz: MUSL paid $1.5 million to settle lawsuit over rigged jackpotRating:

IOWA CITY, Iowa — A national lottery group agreed to pay $1.5 million to settle a lawsuit filed by an Iowa man who claimed that a $9 million jackpot he won in 2011 would have been bigger if the previous one hadn't been fixed by an insider.

An email released Friday shows that the Multi-State Lottery Association (MUSL) informed its directors on Oct. 9 that it had agreed to pay Larry Dawson $1.5 million as a "full and final settlement"of his claims.

The association had refused to release details of the settlement. But the Iowa Lottery, which is a member of the association, released the email in response to an open records request by The Associated Press.

The email from the association's executive director J. Bret Toyne said that the group admitted no wrongdoing in the settlement, which was negotiated by its mediators and insurance carrier with Dawson's lawyers. It contained a confidentiality provision.

The settlement cancelled a trial that was scheduled for this month in Des Moines.

Dawson, a financial adviser from Webster City, Iowa, won a $9 million Hot Lotto jackpot in 2011 and claimed the $6 million pre-tax cash payout.

Years later, he learned that the game's previous $16.5 million jackpot had been rigged by Eddie Tipton, the association's information security director, in a massive fraud. His lawsuit alleged that money should have carried over to the prize he won, and originally sought $10 million.

Timeline of the biggest crime in US lottery history

The following is a compilation of Lottery Post news coverage chronicling the Hot Lotto mystery and subsequently discovered crime.

We start the timeline with a news story indicating that only 3 months remained for the $16 million Hot Lotto jackpot to be claimed.

2011

2012

2013

2014

2015

2016

2017

2018

2019

AP

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6 comments. Last comment 8 months ago by KY Floyd.
Page 1 of 1
music*'s avatar - DiscoBallGlowing
Fresno, California
United States
Member #157851
August 2, 2014
3919 Posts
Online
Posted: December 9, 2019, 6:28 pm - IP Logged

The wheels of Justice grind slowly here in the U.S.A

 "We are all in this together!" 

    cottoneyedjoe's avatar - cuonvFT

    United States
    Member #197033
    March 28, 2019
    538 Posts
    Offline
    Posted: December 9, 2019, 7:01 pm - IP Logged

    Hats off to the press for finding a work around to the NDA. Doesn't say they also covered his legal fees, so I assume no.

    ... Sooper dooper top seekrit winning numbers: 5 16 17 24 33 52 ...

      Avatar
      Florida
      United States
      Member #186825
      January 2, 2018
      281 Posts
      Offline
      Posted: December 9, 2019, 7:14 pm - IP Logged

      Hats off to the press for finding a work around to the NDA. Doesn't say they also covered his legal fees, so I assume no.

      Even after legal fees he should clear a good million. He's not doing too bad.

        Avatar
        Maryland
        United States
        Member #155449
        May 19, 2014
        33 Posts
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        Posted: December 10, 2019, 9:19 am - IP Logged

        Given the odds that someone else might have won the jackpot before Dawson, that is probably a fair amount.

          Avatar
          Kentucky
          United States
          Member #32651
          February 14, 2006
          8930 Posts
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          Posted: December 10, 2019, 5:55 pm - IP Logged

          Given the odds that someone else might have won the jackpot before Dawson, that is probably a fair amount.

          I Agree!

          Hadn't Tipton rigged that drawing the jackpot would continue to grow and someone probably would have won before Dawson. MUSL paid Dawson because he was the next jackpot winner.

          Mister we could use a man like Herbert Hoover again

            KY Floyd's avatar - lysol avatar.jpg
            NY
            United States
            Member #23834
            October 16, 2005
            4250 Posts
            Offline
            Posted: December 11, 2019, 3:22 pm - IP Logged

            The paid him because they figured a jury might award him even more money.