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Curlin's Co-Owners Disbarred

Since today is Breeders Cup Day, I would be remiss in not updating the story of Curlin's minority owners, the lawyers who fraudulently diverted millions of dollars from their clients in the settlement of a class action arising out of the diet drug commonly known as fen-phen. The criminal trial of Shirley Cunningham Jr. and William Gallion ended in a hung jury and they are scheduled to be retried in federal court in February.

The two filed motions with the Kentucky Supreme Court requesting voluntary withdrawal from the Kentucky Bar as permanent disbarrment. The Court entered an order disbarring the pair on October 23.

In a separate state court civil action in which the lawyers former clients are seeking recovery of diverted funds and have received a $42 million judgement, the judge has ordered that the pair's 20% interest in Curlin be sold and the proceeds used to satisfy the judgement. The interest will be sold pursuant to a sealed bid auction with bids due by November 5. Curlin seeks to close out a memorable season by winning the Breeders Cup Classic this afternoon at Santa Anita. A hoped for match up with Kentucky Derby winner Big Brown will not take place as Big Brown has been retired due to injury.

Full post as published by Sports Biz on October 25, 2008 (boomark / email).