MUSL paid $1.5 million to settle lawsuit over rigged jackpot

Dec 9, 2019, 8:42 am (6 comments)

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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

Comments

music*'s avatarmusic*

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

cottoneyedjoe's avatarcottoneyedjoe

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.

MsBee18

Quote: Originally posted by cottoneyedjoe on Dec 9, 2019

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.

Cruzincat

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

Stack47

Quote: Originally posted by Cruzincat on Dec 10, 2019

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.

KY Floyd's avatarKY Floyd

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

End of comments
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