"I gave them every opportunity to do the right thing and stay out of it," said Marco Gonzalez, an attorney for the foundation. "Not only did they not, they bent over backwards to allow an illegal show to go forward."
The suit alleges the fireworks result in the release of pollutants to beaches and coastal surface waters.
Environmentalists say the area is an ecological preserve and should never be exposed to fireworks.
"I look at people that file this kind of lawsuit as sort of bomb throwers, anarchists," said Town Council President Rick Wildman. "They're causing problems for people for their own self interest."
A court hearing on the issue is scheduled for Wednesday.