10/01/2010 3:31PM

Motion filed in Lane's End Case


LEXINGTON, Ky. – KNC Investments, a group involving Jerry Jamgotchian that has offered to purchase interests in Lane’s End stallions Lemon Drop Kid and Kingmambo, has filed a motion in Kentucky’s Woodford County Circuit Court in hopes of clearing the way for the horses’ syndicate members to consider their offer.

KNC Investments filed a motion this week to lift a temporary restraining order that Lane’s End Stallions received from the court on Sept. 15. Lane’s End contended that shareholders Ashley Andrews and Robert Raphaelson did not provide adequate information about the offers’ terms and that they violated terms of their syndicate agreements by accepting KNC Investments’ offers without offering other shareholders a right of first refusal. Lane’s End also alleged that Jamgotchian, who says he is a minority investor in KNC, violated Kentucky’s law against undisclosed dual agency, in which a person receives payment from both buyer and seller in the same transaction without disclosing his dual role to all parties.

The day after Lane’s End received the restraining order, Jamgotchian and KNC disclosed Jamgotchian’s commission as $50,000 for each purchase, from which he will pay expenses. Jamgotchian and KNC contend that Lane’s End is “concealing and withholding these offers from all of their syndicate members,” said Jamgotchian.

“The defendants Andrews and Raphaelson have met all of their obligations under the syndicate agreements, and the defendant KNC is therefore entitled to proceed with its proposed purchase of Andrews’ and Raphaelson’s shares,” KNC and Jamgotchian’s latest filings said.

In related news, Lane’s End announced on Sept. 28 that it had pensioned Kingmambo. Two weeks earlier, Lane’s End owner Will Farish revealed the 20-year-old stallion’s breeding days likely were over because of a recurring neurological problem that made it difficult for the accomplished sire to cover mares.