Litigation brought by a private market investment company against prominent Thoroughbred owner John Stewart and the private equity firm he founded, MiddleGround Capital, has been settled in principle.
Stewart, the managing partner of MiddleGround, told BloodHorse that both sides have come to an agreement and the case that was brought by Archean Capital Partners and filed in New York County Supreme Court has ended. On Jan. 22 the court posted a document noting the breach-of-contract case had been settled in principle and set a deadline of Feb. 23 to completely document the agreement. Details of the settlement were not released.
"The parties have reached an agreement in principle and require additional time to document the settlement of this matter," said the stipulation filing.
DOWNEY: Stewart Faces Lawsuit Seeking More Than $20 Million
While the civil complaint from Archean Capital Partners seeking more than $20 million mentioned Stewart's racing operations, Stewart said the now-resolved dispute did not involve his Thoroughbred interests.
"The allegation that spending on horse racing was not approved was not even part of the resolution," said Stewart, who campaigns horses as Resolute Racing. "Horse racing was not an issue."
Claims in a lawsuit present one side of the case. Defendants have the right to file responsive pleadings setting out their position. In this case, the issue has been resolved through a settlement.
Stewart's Resolute Racing, honored as a 2024 New Owner of the Year by OwnerView, is sponsoring the Eclipse Awards, Jan. 23 at The Breakers in Palm Beach, Fla.
