Zayat Lawsuit: Flintshire, Sears Seek Motion to Dismiss
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Photo: Keeneland/Coady Photography
Lemoona works at Keeneland in 2019 before her start in the Rood and Riddle Dowager Stakes
Flintshire Farm and Brad Sears are the last defendants seeking relief from an attempt by a New York investment company to repossess assets once owned by Zayat Stables.
MGG Investment Group and Zayat Stables are embroiled in a lawsuit that accuses the racing stable of breach of contract and fraud associated with more than $24.5 million in loans. As part of the legal action, MGG attempted to repossess racehorses, breeding stock, and nine breeding rights to Triple Crown winner American Pharoah the company claimed were collateral for the loans and inappropriately sold.
Flintshire and Sears became part of the lawsuit due to acquiring the breeding rights to grade 3-placed stakes winner Lemoona from Zayat Stables for $170,000 on March 6, 2019. Flintshire then sold the mare to Thomas Clark Bloodstock for $250,000 at the 2020 Keeneland January Horses of All Ages Sale. Lemoona is a 5-year-old daughter of Lemon Drop Kid out of the winning Holy Bull mare Singita. The mare was third in the La Canada Stakes (G3) on dirt at Santa Anita Park and went on to win the Possibly Perfect Stakes at Santa Anita on the grass.
Like other defendants before them, Flintshire and Sears are asking for a dismissal of MGG's claim based on protections provided by the U.S. Food Security Act, which essentially states farm products bought by farming operations are sold free of any security interest unless specific conditions are met. Fayette (Ky.) Circuit Court Judge Kimberly Bunnell has already made several rulings in favor of motions to dismiss because these specific conditions had not been met.