Walmac Stud in Lexington has been sued by New Jersey horseman James Scatuorchio over the handling of stallion Ready's Image.
Scatuorchio alleges in the suit filed in U.S. District Court in New Jersey that Walmac, its Saybrook Advertising arm and chief operating officer John T.L. Jones III, along with others, have defrauded him of earnings from his share of the stallion. The son of More Than Ready stands for $6,500 in Kentucky and Australia.
According to the lawsuit, Walmac failed to provide an accurate accounting and access to a complete set of books and records from Ready's Image. As a result, Scatuorchio said, he has been forced to file incomplete tax returns for 2009 and 2010.
Walmac has moved to have the lawsuit dismissed and sent to arbitration, as the contract stipulates, or moved to Kentucky.
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In a statement released Tuesday, Walmac called the suit slanderous: "We feel the lawsuit is a pre-emptive ploy by Scatuorchio and related parties to obfuscate and to deny their contractual obligations to Walmac and to avoid current and future lease payments owed Walmac and expenses related to our co-ownership."
According to Walmac, Scatuorchio and his children, who also are plaintiffs, "owe monies not only to Walmac but to our partner in Australia, Lincoln Farm (where Ready's Image stands in the Southern Hemisphere). Walmac and its related parties owe not a dime to the plaintiffs. ... We expect the case to be thrown out of court."
Scatuorchio is fighting the move to arbitration, alleging in the lawsuit that "Walmac did not disclose that Jones and Walmac Stud had a history of litigation in which they had been accused of malfeasance by business associates in the horse-breeding community."
Scatuorchio said in the suit that Walmac and Saybrook intentionally have provided inaccurate and incomplete expense statements while misrepresenting how much money Ready's Image has generated.