A Kentucky appeals court has upheld a lower court’s dismissal of several Thoroughbred entities from a civil suit between MGG Investments and Zayat Stables. The Kentucky Court of Appeals unanimously upheld the actions of Fayette County Circuit Court, which determined the New York investment firm could not sue the purchasers of stallions, mares, and stallion shares sold by Zayat.
MGG sued Zayat Stables in early 2020 after the investment firm said the stable failed to pay back a $23 million loan. Among its accusations against the Triple Crown-winning owner, MGG claimed that Zayat had sold off assets without informing MGG or giving the company the money it was entitled to from those sales. MGG had named Yeomanstown Stud, Hill ‘n’ Dale, LNJ Foxwoods, Orpendale, and others who had purchased bloodstock assets from Zayat.
Zayat Stables was put under the care of a third-party receiver, and as of early 2021 was down to two horses. Zayat Stables owners Ahmed Zayat has filed for Chapter 7 bankruptcy since the start of the MGG lawsuit.
Read more at The Blood-Horse
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