A Douglas County commissioner is among those being sued over the failure of an initiative petition drive in 2020 concerning the legalization of medical marijuana.
Commissioner Jim Cavanaugh, an attorney, as well as a fellow lawyer Michael O'Hara, a campaign treasurer and a company based in Washington, D.C., were all named in a lawsuit filed last week by donors to the effort to qualify the medical cannabis issue for the November ballot.
The lawsuit claims that Cavanaugh and the others failed to account for the spending of donations, reported political contributions late, and did not create a nonprofit to properly handle the donations.
The plaintiffs in the lawsuit also allege that Cavanaugh and O’Hara assured them that the language of the Nebraskans for Medical Marijuana ballot initiative was legally “solid."
However, when anti-cannabis forces challenged the approval of the ballot language by the Nebraska Secretary of State, the Nebraska Supreme Court ruled that it contained more than one subject in violation of the state constitution, thus disqualifying the issue for the ballot.Â
Cavanaugh and O'Hara were hired to coordinate the initiative, and they formed a campaign committee called "ADOPT." They hired a D.C. firm, First Tuesday Campaigns, to collect the more than 122,000 signatures needed to qualify for the ballot, according to the lawsuit.
A Texas oil company, Mai Oil; a Maryland investment firm, Kingfish Investments; and an Omaha construction company, Harper Enterprises; donated about $606,000 in February and March of 2020 to get the petition drive underway.
However, by June 8, the effort — which paused for three weeks because of the COVID-19 pandemic — had collected only about 63,000 signatures, and the group of financial contributors moved to fire the Cavanaugh group.Â
That, according to the lawsuit, led to a dispute over the return of some of the contributions and whether the contributors had to sign a "hold harmless" agreement with Cavanaugh and others before the completed petitions would be turned over to them.
The lawsuit alleges that First Tuesday agreed to return $328,000 in contributions, but that only $170,000 was provided.
The lawsuit maintains that the financial backers of the petition drive had signed the release agreement "under duress." It asks the Lancaster County District Court to nullify the agreement and award them financial damages.
Despite the disruption, a new coordinator of the petition drive, Heartland Strategy Group, was hired. Heartland brought in a new firm, which gathered 150,000 signatures in just more than a month to reach the signature requirement.
Cavanaugh, when reached by telephone Tuesday, said he had not yet read the lawsuit. A message left with O'Hara's office was not immediately returned. Similarly, a message left with Jonathan Stember, an official with First Tuesday Campaigns named in the lawsuit, was not returned.
Barry Rubin, president of Heartland Strategy Group, said that the Cavanaugh organization failed to "put their money on the ground" to gather signatures.
Because of the late filing of campaign donations reported by ADOPT, the Nebraska Accountability and Disclosure Commission imposed late filing fines in the amount of $750 for Harper Enterprises, $300 for Kingfish Investments and $34,550 for Mai Oil.
The fine for Mai Oil was larger because penalties are based, in part, on the size of the unreported contribution, according to the commission. Mai Oil also waited more than a month to pay the fine, which caused it to escalate.
TOP JOURNAL STAR PHOTOS FOR MARCH:
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Secret Jungle at the Lincoln Children's Zoo is now open.

Tonnie, a female 10-month-old black-headed spider monkey, explores her enclosure in the Lincoln Children's Zoo Secret Jungle.
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LINCOLN, NEB. - 03/13/2021 - Elkhorn’s Dane Petersen (41) feels the weight of Beatrice’s Jace Pethoud (11) as he, Elliott Jurgens (5) and Kaden Glynn defend against him in the second half on Saturday, Mar. 13, 2021, during the Class B state final at Pinnacle Bank Arena. FRANCIS GARDLER, Journal Star
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LINCOLN, NEB. - 03/12/2021 - Millard North's Saint Thomas celebrates after scoring a three-point-shot right before Millard West called a timeout in the second quarter during a class A semifinal, Friday, March 12, 2021, at Pinnacle Bank Arena. KENNETH FERRIERA, Journal Star
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Auburn players, including Cam Binder (2) and Bret Baltensperger (40) give the Pierce team a wave after winning a Class C-1 boys state tournament first-round game Wednesday at Pinnacle Bank Arena.
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Nebraska Gov. Pete Ricketts delivers opening remarks in opposition of medical marijuana legislation during a public press conference at the Nebraska State Capitol on Wednesday, March 10, 2021. KENNETH FERRIERA, Journal Star
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Milford's Seth Stutzman (top) rises over Omaha Concordia's Justin Otten for a rebound in the third quarter in a Class C-1 boys state tournament first-round game Wednesday at Pinnacle Bank Arena.
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Nebraska's Eleanor Dale (left) follows the ball after heading it over Michigan's Alia Martin in the first overtime period on Sunday, March 07, 2021, at Barbara Hibner Stadium. KENNETH FERRIERA, Journal Star
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Local artist Connie Clark practices painting at her at her easel in her artist workspace situated in the corner of the apartment she lives in on Monday, March 01, 2021.Â
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LINCOLN, NEB. - 03/13/2021 - Falls City Sacred Heart’s Jacob Froeschl (12) and his teammates celebrate their win over Parkview Christian on Saturday, Mar. 13, 2021, during the Class D-2 state final at Pinnacle Bank Arena. FRANCIS GARDLER, Journal Star
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LINCOLN, NEB. - 03/13/2021 - Auburn players rest on the sideline while waiting for their gold medals after winning the C-1 state championship, Saturday, March 13, 2021, at Pinnacle Bank Arena. KENNETH FERRIERA, Journal Star
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LINCOLN, NEB. - 03/12/2021 - Nebraska's Lexi Sun (11) and Lauren Stivrins (26) led the Huskers to a come-from-behind win over Ohio State on Friday, Mar. 12, 2021, at the Devaney Sports Center. Sun had 17 kills and Stivrins had 18 kills as Nebraska came from two sets down to win against the Buckeyes. FRANCIS GARDLER, Journal Star
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Lincoln, NE - 3/9/2021 - (L - R) Millard North parents Tonya Sandoval, mother of basketball player Tyler Sandoval, and Jessica Haynes, mother of basketball player Hunter Sallis, pick up cutouts of the team's players and coaches before a boys state tournament quarterfinal game on Tuesday, March 9, 2021. GWYNETH ROBERTS, Journal Star
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Lincoln, NE - 3/11/2021 - Two E-4B aircraft prepare to take off on Thursday, March 11, 2021, at Lincoln Airport GWYNETH ROBERTS, Journal Star
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Lincoln, NE - 3/12/2021 - Elkhorn's Colton Uhing (20) reacts to teammate Dane Petersen (41) dunk as Norris's Cade Rice (15) watches in a Class B boys state tournament semifinal game on Friday, March 12, 2021, at Pinnacle Bank Arena. GWYNETH ROBERTS, Journal Star
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Lincoln, NE - 3/15/2021 - Debris sits outside Southwood Village Apartments at South 27th Street and Nebraska 2 after Lincoln Fire and Rescue responded to a fire on Monday, March 15, 2021. GWYNETH ROBERTS, Journal Star
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LINCOLN, NEB. - 03/12/2021 - Nebraska’s Lexi Sun (11) and Lauren Stivrins (26) led the Huskers to a come-from-behind win over Ohio State on Friday, Mar. 12, 2021, at the Devaney Sports Center. Sun had 17 kills and Stivrins had 18 kills as Nebraska came from two sets down to win against the Buckeyes. FRANCIS GARDLER, Journal Star
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LINCOLN, NEB. - 03/05/2021 - Pius X’s Charlee Hagedorn (34), Alexis Markowski (partially hidden), Adison Markowski (32) Miriam Miller (12) and Jill Aschoff (right) celebrate at the buzzer as they defeated Omaha Central 47-38 on Friday, Mar. 5, 2021, during the Class A state semifinals at Pinnacle Bank Arena. Alexis Markowski scored 30 points and grabbed 27 rebounds in the win. FRANCIS GARDLER, Journal Star
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LINCOLN, NEB. - 03/06/2021 - Weeping Water's Jamison Twomey (2) collapses on the floor after a resulting dogpile after the class D1 state championship match on Saturday, March 06, 2021, at Pinnacle Bank Arena. KENNETH FERRIERA, Journal Star
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LINCOLN, NEB. - 03/06/2021 - North Bend celebrates on the court after defeating Hastings St. Cecilia to win the class C1 state championship match on Saturday, March 06, 2021, at Pinnacle Bank Arena. KENNETH FERRIERA, Journal Star
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LINCOLN, NEB. - 03/06/2021 - Hastings St. Cecilia's Katharine Hamburger (center) comforts teammates Erin Sheehy (left) and Bailey Kissinger after as they wait for the runner up trophy after losing the class C1 state championship match on Saturday, March 06, 2021, at Pinnacle Bank Arena. KENNETH FERRIERA, Journal Star
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LINCOLN, NEB. - 03/06/2021 - North Bend's Cierra Kluthe raises the net after her team became the the class C1 state champions on Saturday, March 06, 2021, at Pinnacle Bank Arena. KENNETH FERRIERA, Journal Star
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LINCOLN, NEB. - 03/06/2021 - Weeping Water celebrates on the court after defeating Pleasanton by a single score by Weeping Water's Grace Cave in the final minute of the fourth quarter during the class D1 state championship match on Saturday, March 06, 2021, at Pinnacle Bank Arena. KENNETH FERRIERA, Journal Star
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LINCOLN, NEB. - 03/07/2021 - Nebraska and Michigan players take a moment to kneel before the start of the match on Sunday, March 07, 2021, at Barbara Hibner Stadium. KENNETH FERRIERA, Journal Star
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LINCOLN, NEB. - 03/11/2021 - GICC's Brayton Johnson (15) and Isaac Herbek (right) react after a dunk by Gil Jengmer (not pictured) in the third quarter during a C-2 state semifinal, Thursday, March 11, 2021, at Pinnacle Bank Arena. KENNETH FERRIERA, Journal Star
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LINCOLN, NEB. - 03/13/2021 - Auburn's Ryan Dixon ties a string of net around his gold medal after Auburn won the C-1 state championship, Saturday, March 13, 2021, at Pinnacle Bank Arena. KENNETH FERRIERA, Journal Star