The District of Columbia's Office of Attorney General (OAG) recently filed a lawsuit, hoping to settle a dispute between a nonprofit and the government agency that funds them.
The dispute began when the government agency's newly appointed CEO and director moved to replace the nonprofit's board of directors and some of its officers. The nonprofit's original board members challenged the CEO's actions, effectively bringing to a halt the nonprofit's ability to function. Thinking the CEO's actions were illegal, the original board informed the OAG in accordance with the District's Nonprofit Corporations Act. The OAG subsequently filed a lawsuit to resolve the conflict.
In the lawsuit, the OAG alleges that the government agency's CEO acted outside of his authority by appointing a new board, and therefore, the original board should be declared the nonprofit's valid leadership board. The OAG further alleges that any actions taken by the agency CEO with regard to the nonprofit must be nullified.
Confident his actions will be found lawful, the agency's CEO is moving forward with the appointment of a new director at the nonprofit. "Press Release: AG Racine Files Lawsuit to Resolve Presence of Dueling Boards at District Nonprofit Open Technology Fund" thedcline.org (Jul. 20, 2020).