Singer is being sued by eight ex-employees of Raising Malawi
The singer sacked the workers last year after $3.8 million (£2.3 million) was squandered building a 400-capacity school that will never be completed.
She is being sued by the group for unfair dismissal and non-payment of benefits.
“There is nothing unfair about the termination of the applicants’ employment since termination of employment was necessitated by genuine economic reason,” the documents state.
The charity’s decision to nix the school building plans was made “after carefully reviewing its financial commitments and future plans and was made in good faith,” the papers add.
Mzondi Chirambo, the lawyer representing the sacked workers, has claimed his clients were asked to sign a “discriminatory termination agreement”.
Trevor Neilson of the Global Philanthropy Group, which Madonna recruited last year, accused the former charity workers of “mismanagement” and of having a “lack of oversight” on the project.
Raising Malawi was founded by Madonna and Kabbalah scholar Michael Berg in 2006.