A high-stakes lawsuit over an alleged rigging of the Texas Lottery has been remanded back to Travis County District Court after Judge Melissa Andrews of the Texas Business Court ruled that her court no longer had jurisdiction.
The case, Reed v. Rook TX, stems from Jerry Reed’s $7.5 million Lotto Texas jackpot in May 2023. Just a month earlier, New Jersey-based Rook TX claimed a $95 million jackpot, raising suspicions after allegedly misrepresenting its date of formation in violation of Texas law. Reed’s legal team has argued that not only is he entitled to the larger jackpot, but that the circumstances also expose what could be a major money laundering scheme. Lt. Gov. Dan Patrick previously called the Texas Lottery “probably the biggest money laundering scheme in the country.”
Initially, the case was transferred to the Business Court after Reed’s complaint raised issues related to Rook’s governance and internal affairs, which fall under that court’s jurisdiction. However, in an amended petition filed August 5, Reed removed allegations tied to Rook TX’s formation date and corporate structure. By eliminating those claims, Reed effectively undercut the Business Court’s jurisdictional basis.
Judge Andrews acknowledged that once jurisdiction is established, later developments rarely undo it. But in this instance, she concluded that Reed “successfully pleaded his way out of this Court’s jurisdiction by removing all such claims.” She emphasized that “the plaintiff is the master of the complaint,” noting that the matter now belongs in Travis County’s 353rd District Court.
Reed’s attorney, Manfred Sternberg, welcomed the decision, saying he had always been wary of the Business Court, describing it as “a newly created court of limited jurisdiction.” Sternberg praised Andrews’ opinion as “well-reasoned” and a step toward ensuring the case is heard in the appropriate venue.
The ruling marks another twist in the ongoing legal battle. Earlier this summer, Andrews initially declined to force disclosure of Rook TX’s ownership structure. But following criticism and new motions, she later reversed course, ordering the company’s members and partners to be identified to the court, though kept confidential from the public record.
The case continues to draw attention as it highlights both the complexities of Texas’ new Business Court system and ongoing questions about the integrity of the state lottery system. Rook TX has not publicly commented on the latest ruling.
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