SEGG sues White Diamond Research for $20M over fraud claims

Sports Entertainment Gaming Global (SEGG) has filed an $20 million lawsuit against White Diamond Research alleging that the research company made false and defamatory representations about it and caused a decline in price by more than 50% of its stock.

The dispute arose from a report published on June 10 by White Diamond, in which SEGG was referred to as a “fake company,” and the validity of several of SEGG’s business announcements were questioned. These included the purported partnership with Polymarket, which was described in the report as an unlikely event.

In response to these allegations, SEGG has stated that the report contained false representations, rather than valid investment opinions and that they are in support of encourages open market discussions; thus, SEGG is pursuing legal action, as it believes the statements made by White Diamond Research were made knowingly and are therefore misleading.

White Diamond Research also identified issues with the activities of Sports.com and asserted that despite SEGG’s numerous announcements regarding their expansion, the Sports.com platform had not yet materialised.

SEGG has since announced its launch of prediction market contracts related to FIFA World Cup matches through its Sports Predicts platform.

This lawsuit comes at a difficult time for SEGG, which recently disclosed that it had made a late filing of its financial results and reported that its revenue for 2025 was $690,000 with an operating loss of $(18,100,000) and is engaged in the acquisition of Veloce Esports.