Gaming News

Kentucky Downs Former Shareholders Awarded $44 Million

KENTUCKY – As reported by the Thoroughbred Times: "The former shareholders of the company that operated Dueling Grounds Race Course in Franklin, Kentucky, now known as Kentucky Downs, were awarded a total of $44-million in damages when a Simpson County jury concluded they were the victims of fraud.

"…The suit alleged that Dueling Grounds Entertainment Corp. overpaid for the purchase of Heirloom Music Co. in 1994 and that the value of the deal was misrepresented when majority owner Earl Sinks bought the company from his wife, Rita, for 32-million shares of Dueling Grounds stock.

"…Following a one-day trial, the jury found that James Sparrow, a director of Dueling Grounds Entertainment Corp., had committed fraud, conspiracy, and breach of fiduciary duty and that Michael Rakusin, an accountant for the Sinkses who appraised the more than 4,000 master recordings owned by Heirloom at $32-million, was guilty of fraud, conspiracy, and gross negligence.

"Rakusin and Sparrow were each ordered to pay $6-million in compensatory damages and $16-million in punitive damages…"

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