By Angela Gonzales | Phoenix Business Journal
A lawsuit has been filed against Mesa-based ZenniHome LLC, a developer that went out of business before completing the construction of 160 homes on the Navajo Nation.
ZenniHome received a $22 million payment but only partially constructed 18 homes before closing up shop, according to the complaint filed in the Superior Court of Arizona in Maricopa County on Feb. 9.
Thomas A. Gilson, partner and co-chair of the litigation department for Scottsdale-based Rose Law Group PC, reviewed the lawsuit, he pointed out that the plaintiff said ZenniHome did not sufficiently explain what it did with the $22 million it received to begin the project.
“It says, for example, that Zenni spent millions of dollars on ‘mysterious expenditures’ that were vaguely defined,” Gilson said. “It also says Zenni breached the parties’ contract by failing to complete the work. These are troubling allegations, but Zenni will have the opportunity to contest them. As the case moves forward, the court will closely look at how the funds were used, examining financial documentation and considering the opinions of forensic experts.”
