Fifth Third (Nasdaq:FITB) Sues Gulf Coast Farms Over Defaulted Loans

One of the major thoroughbred breeders in the U.S., Gulf Coast Farms, was sued by Fifth Third Bank (Nasdaq:FITB) over approximately $15 million in defaulted loans.

In 2010, Gulf Coast Farms was the fourth most successful breeder in North America, generating close to $5.6 million in earnings, and also having bred Preakness winner Lookin At Lucky.

Filed in Lexington, Kentucky, where many of the horse facilities are located, the lawsuit says that Gulf Coast owes Third Bank $6.87 million on a 2009 note and another $7.59 million on a 2010 note. There was a smaller amount of $664,500 connected to another deal included with the filing.

Fifth Third closed Thursday at $14.22, dropping $0.39, or 2.67 percent.

They have about 10 times their normal 3-month trading volume on news they're raising capital to pay off TARP.