Following the initial failed drug test by Kentucky Derby Presented by Woodford Reserve (G1) winner Medina Spirit, four horseplayers have filed a class action lawsuit against the horse's owner, Zedan Racing Stables, and trainer, Bob Baffert.
The initial group of horseplayers named as plaintiffs in the lawsuit includes 2012 National Handicapping Championship winner Michael Beychok of Baton Rouge, La., as well as Justin Wunderler of Waretown, N.J., Michael Meegan of New York, and Keith Mauer of Roseville, Calif. The suit was filed in United States District Court for the Central District of California on behalf of the four players "and all others similarly situated."
In the suit the wagers of each player are outlined along with their potential winnings, "but for the illegal, drug-induced win by Medina Spirit," the suit alleges. The plaintiffs accuse Baffert of "repeated acts of illegally doping and entering horses into Thoroughbred races in the state of California and elsewhere." The plaintiffs allege that the behavior amounted to "illegal gambling and/or horse doping through a pattern of racketeering activity."
On May 9 Baffert said that Medina Spirit's post-race drug test came up positive for the corticosteroid betamethasone at a level of 21 picograms per milliliter of blood. Kentucky racing rules do not permit any level of betamethasone in the horse's blood on race day. Baffert and his attorney, W. Craig Robertson, have maintained that betamethasone at that level would not have affected Medina Spirit's performance.
In the plaintiffs' filing, they disagree, calling betamethasone "a performance-enhancing substance" in "violation of the commonwealth of Kentucky's equine medication protocols."
Robertson called the lawsuit "completely frivolous and with zero legal merit."
Kentucky law on pari-mutuel wagering follows the standard throughout the country that calls for payouts to be based on the official order as determined by the stewards on race day.
"At the end of each live horse race, the placing judges shall advise the manager of the pari-mutuel department by the use of the totalizator equipment or by telephone of the official placement of the horses, and payouts shall not be made until the receipt of the notice," the relevant part of the rule reads. "Payment of valid pari-mutuel tickets shall be made on the basis of the order of finish as declared 'official' by the stewards. A subsequent change in the order of finish or award of purse money that may result from a subsequent ruling by the stewards or commission shall not affect the pari-mutuel payout."
While that has been the standard, the Associated Press reported last year that an aggrieved Standardbred-racing bettor received a $20,000 settlement in a federal lawsuit filed in New Jersey in which he claimed he was cheated out of winnings when a drugged horse won a 2016 New Jersey race. That lawsuit, which was funded by PETA, saw trainer Robert Bresnahan Jr. and horse owner J.L. Sadowsky reach a settlement with horseplayer Jeffrey Tretter.
In the lawsuit concerning the 2021 Derby, the plaintiffs argue that "If Medina Spirit had been properly prohibited from competing as a result of the failure to meet this 14-day withdrawal requirement, plaintiffs and class members would have won the following types of bets ..." They then listed a number of different wagers involving the Derby.
Attorney Dan Markoff of Oklahoma City, co-counsel for the plaintiffs, noted that when a horse is disqualified, racing makes an effort to compensate all of the wronged connections by moving them up and awarding additional purse money. When a runner-up is declared the winner, he noted that the owner, trainer, and jockey of that horse are fairly compensated.
"I think it's important that the bettors finally have a say in how this game that we all love so much has been regulated or misregulated when it comes to drug use," Markoff said. "It just kind of was the final straw, I think for a lot of us.
"This lawsuit would not have been brought if this was a one-off situation. This is a pattern. And the pattern has gone on for a long time," Markoff said. "Mr. Baffert is obviously a talented trainer, but he's also a talented trainer who has had a lot of issues with his horses testing positive. And if you look at the pattern, what you see is minor penalties, very minor penalties.
"So by bringing this lawsuit, our hope is primarily that we can change this industry that we love."
Markoff said the case will move forward if a disqualification of Medina Spirit occurs. He said that if that DQ occurs, they will welcome anyone to join the suit who has a paper or electronic record of their wager. He noted that would include show wagers on favorite Essential Quality , who finished fourth.
In 2020 Baffert was sanctioned four times by regulators after his horses failed post-race drug tests. Each of those tests were for therapeutic medications that are either not allowed to be in a horse's system on race day or they were at a level exceeding permissible levels of those substances on race day.
In their filing, the plaintiffs include records of a number of regulatory findings against Baffert. Some of those regulatory decisions involve failed drug tests but others do not involve drug or medication issues.
A class action lawsuit also has been filed against Baffert and Churchill Downs in Jefferson (Ky.) Circuit Court by Anthony Mattera, who is being represented by Bahe Cook Cantley & Nefzger. That case also names Churchill, as it argues track officials "should have had a system in place to test horses and get the results prior to races and scratch any horse that tests positive for a banned substance."
