Racing industry may sue over horse flu …..

The Federal Government may face legal action over the horse flu outbreak which has brought Australia's lucrative racing industry to a standstill.

This morning the virus appeared to have spread to racehorses for the first time, with three thoroughbreds from the stables of Bart Cummings and Gai Waterhouse at Sydney's Randwick track showing possible symptoms. 

Mr Cummings' son, fellow trainer Anthony Cummings, believes the outbreak will cost the breeding industry hundreds of millions of dollars, and some people may seek compensation.

"There's little doubt that there was a breakdown in the protocols at the quarantine station, and that breakdown of protocols has had a devastating effect in the industry," he said.

"At the end of the day the buck always has to stop somewhere, and I think people will be looking to whatever claims they might be able to make."

TabCorp shares were almost 2.5 per cent lower in early trade today, after the outbreak caused million-dollar losses at the weekend.

Racing Industry May Sue Over Horse Flu