The statement went on to claim the decision to terminate their relationship was mutual.
Despite the outcome, Gallop's owners say their investigation was "inconclusive," and that "despite news reports to the contrary, this is not a simple, straight-forward matter."
The statement was made one day after Bridgewater Patch revealed that Morales had not made good on her promise to donate the thousands she received from supporters to help wounded vets through the Wounded Warrior Project.
At least three people told NBC 4 they had been refunded their donations, but one person who sent in cash said he had not had his money returned.
No word on how much of that money has been returned to date.