With Country House and Maximum Security missing the Preakness, they'll be no Triple Crown victor this year - even one with an asterisk.
American Pharoah and Justify won Triple Crowns in 2015 and 2018, respectively.
It is the first time a Derby victor has been disqualified because of a foul on the track.
Grindstone, who was found to have bone chips in one of his knees, was the first Derby victor to be retired immediately after that race since Bubbling Over in 1926.
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It is now preparing sanctions for the 25 remaining members of the court, a senior United States administration official said on Monday.
The disqualification was made after two jockeys - including Country House rider Flavien Prat - claimed a foul on Maximum Security, who veered outward and bothered multiple horses as the pack hit the top of the stretch and headed for home.
The 2019 Preakness Stakes is set for Saturday, May 18 at Pimlico Race Course in Baltimore, Maryland. Owner Gary West's appeal of the disqualification was denied by the Kentucky Horse Racing Commission on Monday, but West has said he'll continue his fight with a lawsuit.
The KHRC's decision can after West's legal team filed the appeal to the commission based in Lexington, Kentucky. It marked the first time in the event's 145-year history that a Derby champion had been stripped of a title because of a track infraction. It was the first time the horse who crossed the finish line first was not declared the victor.
"It's probably a little viral thing".
"I was just engaging momentum when the horse collared me", Court told Horse Racing Nation.