Report: Stronach family feud continues with second lawsuit
Andrew Stronach has followed family patriarch Frank Stronach in filing suit against Belinda Stronach, Andrew's sister and Chairman of The Stronach Group, which owns and operates tracks such as Santa Antia Park and Gulfstream Park, Bloomberg News reports.
According to the lawsuit filed in Canada, Andrew Stronach, who owns 23 percent of the company through family trusts formed by Frank, claims Belinda and company trustees "have undertaken a number of improvident and costly investments that have resulted in significant losses." As a result, Andrew sought "a proper accounting" of his trust, but requests were ignored, he says. The suit followed.
This latest chapter of a family feud inside one of American racing's premier ownership groups follows the bombshell allegations last month by Frank Stronach seeking $500 million in damages from his daughter, who he claims committed "a series of covert and unlawful actions" with company assets in addition to overly lavish spending using Stronach Group funds.
Andrew Stronach's filing cites "a complete breakdown in trust and confidence" between Belinda Stronach and the rest of the family. In response, Belinda Stronach told Bloomberg News in a statement:
“The filing on behalf of my brother is an extension of my father’s legal pursuit against me and my children, and the allegations remain just as untrue. We will be responding formally in due course. It saddens me greatly that we have reached this juncture in our family.”
It is unknown how or if the family's growing rift could affect its racing holdings.
A former politician, Belinda Stronach has also been referred to as Canada’s most powerful business woman. She formerly worked for Magna International, Stronach’s auto parts business, before Frank Stronach appointed her head of the other family business. In recent years, she has stressed modernizing racing, and has become a front-facing proponent of Gulfstream Park’s Pegasus World Cup, which runs for the third time in January.
Frank Stronach continues to serve as honorary chairman of The Stronach Group.