In the Rosebowl, USC threw a lateral pass. The pass hit the ground (which I assumed was incomplete) a receiver picked it up, and ran down the field for a first down. It was reviewed and the official said it was a lateral pass. I am not questioning lateral, I understand it was pass backwards, but if it was a pass, and it hit the ground, wouldn't it be incomplete just as any other pass? Also, if not incomplete, could the defensive team have picked up the ball an ran with it. Even if it was ruled a fumble, that would have made more sense, but it was not--a lateral pass.

I agree if it was thrown and hit the ground that should have been incomplete and a dead ball.Sound like some bad officiating... I am sure in the NFL it would have been a dead ball.

I agree. I didn't see the game but if it was a lateral pass, then when it hits the ground the pass is incomplete and the play (and ball) are dead.

Read the rules, I think about fr88, that will explain how that happened.