Sunterra Group is actively pushing back against a motion to dismiss its counterclaims in an ongoing federal lawsuit concerning financial activities tied to its U.S. hog farming operations. The dispute centers around allegations of improper financial transfers involving multiple Sunterra-affiliated farms and the lender that financed their operations.
The case involves Sunterra’s U.S.-based subsidiaries, which managed farrow-to-finish operations across multiple states. At the heart of the legal proceedings are claims surrounding fund transfers between entities and the use of livestock as collateral in a lending agreement.
In its defense, Sunterra has argued that the lender not only had full visibility into the financial operations in question but also participated in structuring those transactions. The company maintains that its actions were transparent and within the scope of its operational agreements.
Meanwhile, a court-appointed receiver continues to oversee day-to-day management of the farms and has proposed selling key assets—including pigs, equipment, and lease agreements—to a third-party buyer. Sunterra has expressed concerns about the proposed sale, questioning whether proper due diligence has been conducted and whether the proposed value reflects a fair market assessment.