Bardstown Bourbon Company Suits: Discrimination, Whistleblower, Defamation

The Bardstown Bourbon Company lawsuit that has drawn the most attention is a February 2026 whistleblower complaint filed by former human resources vice president Sylvia Sanders, who alleges she was fired after reporting gender discrimination, retaliation, and safety violations to the Kentucky distillery’s leaders and its private equity owners. That case is now one of four active matters in Kentucky courts involving the company, its executives, and its former employees.

What the Sanders Whistleblower Suit Claims

Sylvia E. Sanders spent five years as vice president of human resources at Bardstown Bourbon Company before her termination in May 2024. She was 62 at the time. On February 13, 2026, she filed suit in Nelson County, Kentucky, naming the distillery, parent company Lofted Spirits, CEO Mark Erwin, company president Pete Marino, private equity firm Pritzker Private Capital, and Pritzker operating partner Christian Brickman as defendants.¹

According to the complaint, Sanders sent Erwin an eight-page memo detailing what she called illegal, unethical, and discriminatory conduct across the organization. When Erwin did not act, she escalated the concerns to Christian Brickman at Pritzker. Her attorney, James Morris, said that within 36 hours of that contact, Pritzker representatives flew to the distillery and physically escorted Sanders from the premises.²

Sanders is seeking $10 million in damages along with lost wages, lost equity interest, punitive damages, and attorneys’ fees.²

Gender Discrimination Allegations

The heart of the complaint is a claim that senior women were systematically pushed out. Sanders alleges at least six female executives were fired or forced to resign between fall 2021 and fall 2024, including the chief financial officer, vice president of hospitality, and vice president of contract sales.²

Erwin is accused of labeling senior women as “pushy” or “emotional” without applying the same terms to male colleagues. The complaint alleges he referred to marketing director Laurel Altman as a “pushy” woman using a vulgar term, and that Altman was fired in 2021 after a publicity event with country musician Brad Paisley. Ingrid Gentry, who served as CFO, was allegedly fired in 2023 for being “emotional” after pushing back on gender discrimination. Hospitality executive Kimberly Bennett was allegedly forced out through a concerted effort by Erwin, and senior executive Susan Garvin allegedly quit in 2024 because she could no longer tolerate what Sanders called Erwin’s “abuse” and gender bias.³

The complaint also alleges Erwin refused to hire a qualified Black woman for a general counsel role and made derogatory comments about transgender individuals.³

Safety and Compliance Allegations

Sanders’ complaint reaches beyond discrimination. It alleges the company falsified mandatory occupational health and incident documentation and failed to meet regulatory reporting requirements. Employees allegedly showed up to work under the influence of drugs or alcohol without discipline, company alcohol was served during work hours, and underage staff were encouraged to drink on the job.⁴

The complaint further alleges theft of company product, a hit-and-run accident involving alcohol, and the systematic exclusion of the human resources department from mandatory reporting processes required under both company and Pritzker policies.¹

The Company’s Counterclaim

Bardstown Bourbon fired back on March 20, 2026, with a counterclaim alleging Sanders breached her contract by forwarding confidential company records to an outside email address and then deleting the originals from company servers. The company is seeking an injunction against further disclosures and unspecified monetary damages.⁵

Sanders moved to dismiss the counterclaim, characterizing it as a Strategic Litigation Against Public Participation, or SLAPP, suit meant to intimidate and silence her. Her attorneys argue her disclosures were protected under Kentucky and federal law as whistleblower activity. The court had not ruled on the motion as of the most recent reporting.⁶

The Heneman Defamation Suit

Herb Heneman, the company’s former marketing chief, filed his own suit against Sanders on March 26, 2026, in Jefferson Circuit Court. Heneman alleges Sanders made “utterly false derogatory and disparaging statements” about him to sensationalize her case, and he is seeking compensatory and punitive damages for humiliation and emotional distress. Heneman has said he “unequivocally” denies the allegations and left the company in early 2024 “on favorable terms” to start a consulting business. Sanders’ complaint, by contrast, alleges Heneman was fired at the insistence of Pritzker Private Capital.⁶⁷

The Sandra Stone Discrimination Suit

The week of May 4, 2026, Sandra Stone became the second former employee to sue the company. Stone, a former swing-shift distillery supervisor, was 67 when she resigned in December 2022. She alleges she was passed over for a promotion to bottling supervisor despite six years of experience in that role at another distillery, with the job going instead to a younger male colleague who had not sought the promotion. She says she was then told she could join the company’s new bottling operation only by accepting a demotion and a substantial pay cut to work as a clerk.⁸

Stone is represented by James Morris, the same attorney handling the Sanders case, and is seeking compensatory and punitive damages for age and gender discrimination.⁹

Earlier Complaints Inside the Company

Sanders’ allegations are not the first complaints from women who worked at the distillery. Samantha Montgomery, a former national brand ambassador employed from May 2018 through fall 2022, filed a formal internal complaint in September 2021 against Herb Heneman, then head of marketing. She alleged Heneman used anti-gay slurs at the Nashville Cocktail Festival, pressured a younger female colleague to drink alcohol and mocked her when she refused, and made racially charged comments about a customer.¹⁰

Montgomery alleged that after she reported the conduct, COO John Hargrove informed Erwin, who tipped off Heneman. When Heneman returned from a two-week medical leave, he attributed his behavior to blood pressure medication. Montgomery said he faced no real consequences and retaliated by excluding her from meetings to make her look unprepared. She also alleged that in 2018, then-majority shareholder Peter Loftin, while intoxicated, screamed at her to serve him alcohol and then placed his hand around her waist during a group photo. She said at least two other women received settlements from the company after filing complaints, including a new mother whose job was eliminated during maternity leave and a server denied a $1,000 tip from a VIP table.¹⁰

Who Owns and Runs the Company

Bardstown Bourbon operates under Lofted Spirits, a parent entity that also includes Green River Distilling Company in Owensboro, Kentucky, and Lofted Custom Spirits. Pritzker Private Capital, an investment firm owned by J.B. Pritzker and Anthony N. Pritzker, acquired Bardstown Bourbon in March 2022 and Green River in August of that year. Mark Erwin became CEO and president of Bardstown Bourbon in September 2019 and now serves as CEO of the broader Lofted Spirits organization.¹¹

Company Response and Where the Cases Stand

Bardstown Bourbon has denied the allegations. In a public statement, the company said: “We believe these claims are without merit, and we intend to vigorously defend ourselves.” Erwin issued his own response: “The allegations against me and my team are false. We have substantial evidence to prove this and will vigorously defend ourselves in a court proceeding, not in the media.”³

As of mid-2026, the Sanders whistleblower case, the company’s breach-of-contract counterclaim, Heneman’s defamation suit, and the Stone age-and-gender discrimination lawsuit are all pending in Kentucky courts.⁴

1
Lexington Herald-Leader. Ex-Bardstown Bourbon Company Executive Files Whistleblower Lawsuit
2
New York Post. Pritzker Firm Linked to Gender Discrimination Lawsuit Against Kentucky Bourbon Firm
3
Lexington Herald-Leader. Whistleblower Lawsuit Details Toxic Workplace at Bardstown Bourbon
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Yahoo Finance. Ex-Bardstown Bourbon Company Executive Files Whistleblower Lawsuit
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Lexington Herald-Leader. Bardstown Bourbon Countersues Former HR VP
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Lexington Herald-Leader. Sanders Moves to Dismiss Bardstown Bourbon Counterclaim
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AOL News. Former Bardstown Bourbon Company Executive Files Whistleblower Lawsuit
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Lexington Herald-Leader. Second Female Former Employee Sues Bardstown Bourbon for Discrimination
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The News-Enterprise. Second Female Former Employee Sues Bardstown Bourbon for Discrimination
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Lexington Herald-Leader. Former Brand Ambassador Details Complaints at Bardstown Bourbon
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Craft Spirits Magazine. Lofted Spirits Unites Bardstown Bourbon, Green River, and Lofted Custom Spirits Brands