In the lawsuit, the general contractor claimed it was owed significant sums under the construction contract for work reconstructing part of the shopping mall. The shopping center owner had withheld funds based on the contractor’s delayed performance and damages suffered as a result of the delay. The Ponist Law Group was able to negotiate an early resolution on behalf of its owner-client, which fully compensated its client for delayed damages and allowed it to pay a greatly reduced sum for the contractor’s services.
Ponist Law Group Defeats $20+ Million California Attorney General Enforcement Case
December 25, 2025
After a three-year investigation, the California Attorney General’s Office filed a sweeping civil enforcement action against a nonprofit organization, its directors, and affiliated companies that supported the charity’s operations. The complaint alleged serious claims, including breach of fiduciary duty, self-dealing, diversion of charitable assets, and misrepresentation. The Attorney General sought more than $20 million in restitution, fines, and penalties, along with over $2 million in purportedly “mandatory” attorney’s fees.
Following five years of hard-fought litigation and a three-month trial, the Ponist Law Group secured a defense verdict on every substantive claim. The only issue on which the Attorney General prevailed involved record-keeping deficiencies.
The outcome was decisive. Instead of the more than $20 million sought, the court awarded just $14,000 in fines and penalties. Instead of over $2 million in attorney’s fees, the court awarded $35,800.
