Justin Zayat

In effort to recoup money from the buyers of horses and bloodstock interests from the financially embattled Zayat Stables, the New York-based lender MGG Investments has taken its case to the Kentucky Supreme Court. Dick Downey of The Blood-Horse first broke the story. "The Kentucky Supreme Court heard oral arguments Feb. 8 pitting MGG, a lender of millions of dollars to Zayat Stables, against buyers of some of the now-defunct Zayat operation's Thoroughbreds and breeding interests. The parties landed in court when money generated by purchases did not turn up...

Defendants Ahmed Zayat, his family members, and the financially troubled Zayat Stables, LLC, are collectively asking a Kentucky court to dismiss a "fraudulent scheme" contract breach lawsuit by New York investment firm MGG Investment Group, LP, on the basis that the complaint has not been brought in the correct legal jurisdiction. Eric Mitchell of the Blood-Horse first reported the story Friday, citing Apr. 21 court documents. The January civil suit claimed that financially strapped Zayat family members allegedly orchestrated a years-long scheme "to sell at a steep discount several millions...