Lawyer sues Zayat for libel

An attorney representing a plaintiff in a suit alleging that American Pharoah owner Ahmed Zayat reneged on a gambling debt has sued Zayat for libel.

J. Joseph Bainton alleges that Zayat defamed him when he made comments to a reporter for The Daily News in New York that the gambling-debt lawsuit was “a fictitious story from people who are trying to extort me.” Zayat made similar comments to a number of publications that also wrote about the gambling-debt lawsuit, and the suit references several of the articles, specifically noting Zayat’s use of the word “fraud.”

“The aforesaid declarations made by defendant … all constitute libel per se and entitle plaintiff to recover general damages and punitive damages particularly given the malicious nature of defendant’s conduct and the fact that at best he so recklessly disregarded the truth,” the suit states.

The suit is seeking $10 million.

Joseph Vann, the attorney for Zayat, released a statement on Tuesday saying that the lawsuit “has no legal merit.”

“We expect it will be thrown out by the court, and our client intends to file a malicious prosecution action after we prevail, if warranted,” Vann said.

The lawsuit is the latest in a string of legal troubles hounding Zayat since his racing stable filed for bankruptcy in 2010. The stable emerged from bankruptcy later in 2010, and Zayat has said that all of his creditors were paid in full and that he has been extended additional credit.

Zayat has denied the allegations in the gambling-debt lawsuit, which was filed last year by Howard Rubinsky, who pleaded guilty in 2008 to assisting in the operation of an illegal gambling business. Zayat has contended that a $25,000 check that is presented as evidence of payment on the debt in the suit was a gift to Rubinsky to help him through financial troubles.

American Pharoah is scheduled to start on Saturday as the heavy favorite in the Belmont Stakes.