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ClassicStar Files For US Bankruptcy Protection
Controversial US horse-leasing operator ClassicStar "has filed for bankruptcy protection, listing nearly US$70 million in debts & more than 300 creditors," reported bloodhorse.com. Former investors have sued ClassicStar, ClassicStar Farms & parent company GeoStar in 5 states over its mare lease program, claiming ClassicStar "improperly diverted investors' money". ClassicStar (which has 2 farms in Kentucky) "has been accused of defrauding investors of more than US$500 million & has been sued in Kentucky & Utah federal courts"; some lawsuits claim the company "inflated the value of its mares, leased more mares than it owned & tried to substitute cutting horses for thoroughbreds".