INDIANAPOLIS – A class-action lawsuit brought by an Auburn man against the Hoosier Lottery can move forward to trial, the Indiana Court of Appeals ruled Tuesday.
Jeff Koehlinger of Auburn is one of two plaintiffs suing the state lottery for thousands of dollars he lost playing the Cash Blast game in 2005 and 2006. He spent almost $2,500 on the $10 tickets, while a man from Carmel spent $40,000.
The suit – which has now been certified as a class-action lawsuit – contends the lottery misstated the number and amount of prizes available in the game. The men say they were misled by advertising that made the odds of winning and prizes available seem greater than they were.
The game promised seven grand prizes of $250,000 each, plus several lesser prizes of up to $10,000 each. But the lottery, after selling 5 million tickets, abruptly reduced the number and amount of prizes.
In a statement posted on its website, the Hoosier Lottery acknowledged overstating the prizes.
It said half of the game’s 5 million tickets were “potentially defective” because of a printing error and were replaced, but internal lottery reports did not reflect the changes, resulting in the prizes being overstated.
The odds of winning were not compromised, the lottery said.
A Marion County trial judge dismissed part of the case on behalf of the Hoosier Lottery, saying the players couldn’t seek a contractual claim. But the appellate court reinstated that claim.
“There is ample designated evidence that several class members relied on the misinformation on the lottery’s website when deciding to purchase Cash Blast tickets. It is reasonable to infer that many of these players also suffered prejudice as a result,” the ruling said.
The ruling said numerous people contacted the lottery with questions and concerns about the change in the odds and the lottery didn’t direct them to an administrative remedy.
“Simply put, it seems that the Lottery had no mechanism for addressing player concerns of this type at the time,” the ruling said.
Lottery officials set up a refund system in January 2007, but the plaintiffs sued about the same time.
“While we are strongly inclined, as a general rule, to allow the Lottery – or any other agency – the opportunity and autonomy to correct its own errors, that particular ship has sailed in this case,” the decision said.
