A lawsuit brought by the Pennsylvania Thoroughbred Horsemen's Association president and one other board member seeking the removal of seven other board members has ended in a settlement.
Under that July 2 agreement that ends litigation brought in Bucks County, Pa., by board president Robert Hutt and board member John Julia, no board members will be removed. Hutt and Julia had alleged financial improprieties and self-dealing among prior leadership of the organization, particularly former president Sal DeBunda, who left office in 2022 after being defeated in an election by Hutt.
The litigation sought the removal of board members Jeffrey Matty Jr., Kathleen DeMasi, Charles Asensio, Jack Armstrong, Scott Lake, Robert Reid Jr., and John Servis. DeBunda was not named as a defendant.
The PTHA released a statement Thursday acknowledging the case had been settled and that no board members will be removed but bylaws will be updated to protect the organization going forward. All parties agree that the settlement conclusively resolves all issues raised in the proceeding.
"On July 2, 2025, the Bucks County litigation among members of the board of directors of the PTHA was settled on terms that all parties believe to be in the best interest of the PTHA and its 2,500-plus members," reads the statement. "In connection with the settlement, the parties recognize that all directors have acted in good faith and in the best interest of the Association at all times and that no party should be removed from the board based on the conduct raised in the litigation.
"As a result of the settlement terms, the board of directors will seek to implement a plan of action that they collectively believe will benefit the PTHA and its members."
The statement noted that none of the involved parties or their counsel representatives would have further comment.
Under the settlement the parties agreed to updates of the bylaws within the next two months. Those changes include training of board members at the beginning of each term and a requirement that board members read the bylaws every year.
The rules will be updated to prohibit compensation of any director or the president, with no possibility of board authorization. Beginning in 2026 the executive director will be ineligible to be a voting member of the board.
The updated bylaws also will include a "more robust conflict of interest and mandatory disclosure policy." And, all standing consulting contracts will be required to be reauthorized at the beginning of each year.
The PTHA also will engage an "independent investigation firm" to review the extent and propriety of all payments through the PTHA and its affiliated entities. Also, the PTHA will engage an independent firm to provide legal analysis of the $4.2 million annual payment contained in the Live Racing Agreement.
