05/06/2010 11:00PM

Stonewall facing new claim


Stonewall Stallions, which is facing a lawsuit over 2009 Northern Hemisphere revenue from its former stallion Medaglia d'Oro, could be facing a new suit by another entity in the case.

Colts Neck Stallions, which is managed by the Thoroughbred Daily News's publisher, Barry Weisbord, and owns 20 percent of Medaglia d'Oro, has moved to file a cross-claim against Stonewall. The claim alleges the Midway, Ky., operation breached a contract by diverting stud fee revenue from an agreed escrow account to another Stonewall entity "so as to unilaterally control the distributions and to sabotage the distributions" to MDO, another shareholders' group that sued Stonewall and Colts Neck in March for $360,000 in revenue from lifetime breeding rights in Medaglia d'Oro.

Colts Neck now alleges Stonewall and related entities ". . . continually caused Colts Neck to be kept in the dark concerning income from its own property, the nominations from its ownership interest, and permitted diversion of funds. It further caused Colts Neck to be exposed to a claim made by MDO in this case . . . ."

Colts Neck also has joined MDO's move for a restraining order requiring Stonewall to deposit the 2009 breeding revenue with the court for distribution under terms of a May 2009 agreement.

Stonewall attorney John Hamilton did not immediately return a call seeking comment.

A court hearing is scheduled for May 12 in the Woodford County, Ky., court.