KTA Dismissed from CDI Lawsuit

KTA dismissed from federal antitrust lawsuit filed by Churchill Downs Inc.

The Kentucky Thoroughbred Association and its executive director have been dismissed from the federal antitrust lawsuit brought by Churchill Downs Inc. against multiple horsemen's groups.

The KTA and executive director David Switzer were dismissed Feb. 4 through an agreed order with the plaintiffs, which include affiliate entities of CDI. Steven Loy, an attorney representing the KTA and Switzer, said the dismissal was reached as part of an agreement announced in January on signal distribution of the Churchill Downs spring meet.

CDI spokesman Kevin Flanery issued a one-sentence statement about the dismissal: “Churchill and the KTA have agreed to mutually release any claims we might have as a result of the lawsuit.”

The KTA and Switzer, who declined comment to The Blood-Horse, were named as defendants in the lawsuit, which carries antitrust allegations by the CDI plaintiffs of collusion and price-fixing. The suit stems from contract disputes over revenue-sharing of wagers made through advance deposit wagering outlets. 

Other defendants still remaining in the lawsuit are the Kentucky Horsemen’s Benevolent and Protective Association, the Thoroughbred Horsemen’s Group, and certain affiliated executives. The Kentucky HBPA has an active crossclaim in the lawsuit, which seeks at least $5 million in alleged unpaid purse contributions in accordance with a 2006 contract it signed with Churchill Downs. The KTA was not party to the crossclaim.

By authority given to them by the federal Interstate Horseracing Act, both the Kentucky HPBA and the KTA must consent to the distribution of racing signals by Churchill Downs to other wagering outlets.