$45 Million Lawsuit Filed Against Berger Foundation Over Thousand Palms Power Deal

A massive $45 million civil lawsuit was filed Thursday against the H.N. and Frances C. Berger Foundation in Palm Desert, centered on a high-stakes deal to bring electricity to a large section of unincorporated Thousand Palms.

The plaintiffs, a group of local infrastructure professionals operating as Wired Works LLC, allege that they were "stiffed" after spending more than a year brokering a critical deal with the Imperial Irrigation District (IID). That agreement resulted in the approval of a new 100-megawatt power substation capable of powering 8,000 homes and businesses—a result the lawsuit claims the Foundation had unsuccessfully sought for decades.

The infrastructure is vital to the area’s future, as major proposed developments near the Acrisure Arena, including a hotel and a hospital, were reportedly impossible to move forward without a reliable power source.

Attorney James G. Bohm, representing the plaintiffs, described the case as a "David versus Goliath" situation. The complaint alleges that Wired Works LLC professionals committed over 5,000 hours of labor and approximately $300,000 of their own money to secure the IID approval, only to be "kicked to the curb" by the Foundation once the deal was finalized. Bohm noted that because of this new electrical service, the land owned by the Foundation stands to realize an increase in value as high as $600 million.

In a statement responding to the filing, Michael B. Rover, President and CEO of the Berger Foundation, denied the allegations.

"The H.N. and Frances C. Berger Foundation is aware of a civil lawsuit filed by Wired Works LLC and is reviewing the claims with legal counsel," the statement read. "The Foundation contends that the claims are without merit and strongly denies any wrongdoing. The Foundation has a longstanding history of working fairly and responsibly with vendors and contractors."

Rover’s statement also suggested the plaintiffs are attempting to use the media to shape a narrative, adding, "We will respond to the allegations through the appropriate legal process, where we are confident the facts will support the Foundation’s position."

The case, filed in Riverside County Superior Court, seeks compensatory and punitive damages for breach of contract, fraud, and negligence.

Explore NBCPalmSprings.com, where we are connecting the valley.