John Stewart, founder of MiddleGround Capital and Resolute Racing, is facing a lawsuit filed by private investment firm Archean Capital Partners. The suit, filed in New York, claims Stewart and his company, along with MiddleGround principals Lauren Mulholland and Scot Duncan, owe over $20 million in unpaid revenue shares. The dispute centers on an agreement from 2018 when Archean invested $75 million in MiddleGround’s initial fund, with an understanding that it would receive a portion of the revenue generated by the firm.
According to Archean, Stewart and the other defendants have failed to pay the agreed-upon share of the revenue streams generated by MiddleGround’s business activities. Despite previous acknowledgments that the payment was due, the lawsuit claims that only a fraction of the total owed amount has been paid. As of October 2024, Archean asserts that it is still owed $22.8 million, out of a total agreed-upon revenue share of $36 million.
In a post on X, Stewart commented on the lawsuit, explaining that it stemmed from a disagreement with an entity that attempted to use litigation to pressure them into an unfair agreement. He stated that he is limiting his comments on legal advice. Stewart also noted that the dispute has led to misunderstandings regarding his business activities, including his personal investments in horse racing, which Archean claims diverted his focus from MiddleGround’s operations.
The lawsuit alleges breach of contract, claiming Stewart’s failure to dedicate his working time to MiddleGround and his investment in horse racing ventures, such as the $25 million spent at a public auction and the acquisition of Shadayid Stud, violated the agreement with Archean. Additionally, the plaintiffs contend that Stewart and the other defendants engaged in business activities without seeking Archean’s approval, further complicating the case.
This legal action, first reported by Thoroughbred Daily News, was filed on December 19, 2024. Judge Jennifer Schecter recently ruled against sealing parts of the court record, allowing the public to access the details of the lawsuit. Stewart and MiddleGround have yet to file a response to the claims, but they have the opportunity to contest the
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