A California horse owner will be able to purchase a share in the stallion Lemon Drop Kid but his offer for a share in the stallion Kingmambo was picked up by other shareholders, meaning he will not get that share.
The offers by an entity represented by owner Jerry Jamgotchian led to a lawsuit in which Lane’s End Farm, which manages the two high-profile stallions, contended the offers were inflated by including commissions to Jamgotchian. Also, Lane’s End sought clarification from the court as to whether a new law in the state pertaining to dual agency representation in equine transactions would permit Jamgotchian’s role in the transactions.
Lemon Drop Kid stands at Lane’s End and Kingmambo stood there until he was pensioned from active stud duty last year.
United States District Judge Karen Caldwell ruled that the offers from KNC Investments to purchase a Lemon Drop Kid share for $350,000 (including commission) and a Kingmambo share for $175,000 (including commission) should be submitted to other syndicate members, who have the right to match the offers under terms of the syndicate agreement. KNC Investments is represented by Jamgotchian.
Jamgotchian said that upon acquisition of the Lemon Drop Kid share, he will request a full audit of the syndicate’s books and records.
”Upon acquisition of the Lemon Drop Kid share, a full audit of the books and records will be immediately commenced and all LDK shareholders will know if there are any irregularities or violations of the syndicate agreement by Lane’s End,” Jamgotchian said in a statement. “More importantly, there will be full transparency into the management of the Lemon Drop Kid syndicate and open communication will be established with all current syndicate members.”
William Hoskins, an attorney for Lane’s End, said Jamgotchian will have access to all books and records pertaining to the Lemon Drop Kid syndication if he purchases a share. “Every syndicate member has full and complete access to the books of the syndicate,” Hoskins said.