Whistleblower lawsuit filed against Kentucky distillery, CEO

Former HR VP alleges discrimination, safety issues and underage drinking at Bardstown Bourbon Company

Published on Feb. 14, 2026

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A former executive at Bardstown Bourbon Company has filed a whistleblower lawsuit against the company, its parent Lofted Spirits, CEO Mark Erwin, and president Peter Marino. Sylvia E. Sanders, the former VP of human resources, alleges gender discrimination, retaliation, and a range of other issues including falsified records, underage drinking, and safety breaches. Sanders was fired in 2024 after reporting the alleged misconduct to the CEO.

Why it matters

This lawsuit represents a potential public relations crisis for the up-and-coming bourbon distillery, which has seen growing success in recent years. The allegations, if proven true, could damage the company's reputation and raise questions about oversight and accountability, especially given the company's private equity ownership and political connections.

The details

According to the lawsuit, Sanders reported 'widespread discriminatory animus and slurs; improper protected classification jokes and commentary; blatant racism, ageism and sexist/gender bias; illegal identity-based decision-making; employees arriving, or becoming, while working, under the influence of drugs and/or alcohol and not being properly disciplined or addressed by supervisors; falsification of mandatory occupational health, and incident-related documentation and regulatory mandated reporting; theft of company product; a hit-and-run alcohol-related accident; omission of human resources altogether from mandatory reporting and/or engagement under BBC and Pritzker Policies and Procedures; and employees, including under-aged employees, being served the corporate group's alcohol during work hours including encouraging under-age drinking.' Sanders was fired weeks later after previously receiving only exemplary reviews.

  • Sanders served as BBC's VP of HR for 5 years until her termination in May 2024.
  • Erwin was named CEO and president of BBC in September 2019, and Marino was later named president.
  • BBC was purchased by Pritzker Private Capital in 2022.

The players

Sylvia E. Sanders

The former VP of human resources at Bardstown Bourbon Company who filed the whistleblower lawsuit.

Mark Erwin

The CEO of Bardstown Bourbon Company's parent company, Lofted Spirits.

Peter Marino

The president of Bardstown Bourbon Company.

Bardstown Bourbon Company

A high-profile Kentucky bourbon distillery that is part of Lofted Spirits, which is owned by Pritzker Private Capital.

Lofted Spirits

The parent company of Bardstown Bourbon Company, owned by Pritzker Private Capital.

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What they’re saying

“This case is about corporate accountability at the highest levels. Our client was the vice president of human resources — the person charged with protecting employees and ensuring legal compliance. When she reported systemic discrimination, retaliation, and potential regulatory violations, she was silenced and removed. No company — regardless of private equity ownership or political connections — is above Kentucky law.”

— James M. Morris, Sanders' attorney (kentucky.com)

What’s next

The lawsuit seeks compensatory damages, lost wages, lost equity interest, punitive damages, attorneys' fees, and a jury trial.

The takeaway

This case highlights the importance of corporate accountability and the need for companies, even those with high-profile ownership and political connections, to properly address allegations of misconduct and protect whistleblowers who report potential wrongdoing.