Essentially there were a lot of people in the community who were standing and speaking at this meeting because they wanted to warn the school board that they were not in favor of any legal action coming against the community, against the school board. They were afraid for their tax dollars.
The school board listened to the people in the community warn them about legal action.
This is correct because a lot of people showed up at the meeting warning the school board that they didn't favor any legal action.
( z1 listen :ARG0 ( z2 board :mod ( z3 school ) ) :ARG1 ( z4 warn :ARG0 ( z5 person :location ( z6 community ) ) :ARG1 ( z7 act :ARG1-of ( z8 legal ) ) :ARG2 ( z9 they ) ) )