Among other allegations, the suit claims Madden had no experience in managing that amount of money and also invested it too conservatively, resulting in low returns.
Her son’s lawyers have filed a motion to dismiss the suit, noting in their filing that none of the accounts lost money and that she had wanted her winnings invested conservatively.
“Although he strongly disagrees with the allegations that have been made, he will respect his family’s privacy by reserving any further comments until the case has been concluded,” said Lee Wedekind III, Scott Mackenzie’s attorney, in a statement provided to CNBC.
Anderson said the situation shows the importance of vetting your advisor before handing over a huge amount to manage. In other words, just because you know someone in the investment world doesn’t mean the person has the expertise or experience to manage a windfall.
“Your stockbroker friend down the street may have some good advice, but how fiscally responsible are they if they’re wrong?” Anderson said.
Meanwhile, the winner of the $768.4 million Powerball jackpot from March 27 has yet to come forward. The winning ticket was purchased in New Berlin, Wisconsin, a suburb of Milwaukee.