Plaintiffs Urgently Appeal LDS Church Tithing Case to Supreme Court

UPDATE: Plaintiffs suing the Church of Jesus Christ of Latter-day Saints for alleged tithing misuse are ramping up their fight, announcing plans to appeal to the U.S. Supreme Court. This urgent move follows the dismissal of their case by the District of Utah Court and a refusal by the Tenth Circuit Court of Appeals to hear it.

The plaintiffs, led by attorney Kay Burningham, are determined to challenge the court’s decision that upheld the church’s claims of autonomy and dismissed allegations of fraud regarding tithing funds. Laura Gaddy, the original plaintiff who initiated this legal battle in 2019, has been at the forefront of this controversy, asserting that the church misrepresented both its history and the intended use of tithing.

This lawsuit adds to a growing list of legal actions against the church, ignited by whistleblower claims from David Nielson, a former senior portfolio manager at Ensign Peak Advisors. Nielson alleged that the church misused billions in tithes, including funding the City Creek Center mall in downtown Salt Lake City.

The plaintiffs’ legal saga kicked off with a class-action suit filed in 2019. After several iterations, including one based on the Racketeer Influenced and Corrupt Organizations (RICO) Act, the court dismissed claims regarding historical misrepresentations and fraud. Most recently, the Tenth Circuit denied a rehearing request. Burningham’s statement indicates they are now looking to the Supreme Court, which only hears about 1% of cases presented.

The implications of this appeal are significant. If the Supreme Court agrees to hear the case, it could set a precedent for how similar lawsuits are handled in the future, particularly regarding religious organizations and financial transparency.

This ongoing legal challenge comes amid a backdrop of public scrutiny over the church’s financial practices. In February 2023, the church agreed to pay $5 million to the U.S. Treasury for using shell companies to obscure its investment portfolio. More recently, in November 2023, other former and current church members filed a lawsuit claiming their donations, totaling around $350,000, were misused.

The stakes are high, and the community is watching closely as these developments unfold. With a Supreme Court appeal on the horizon, the conversation surrounding tithing and the church’s financial integrity is likely to intensify.

Stay tuned for further updates on this developing story that touches on the intersections of faith, finance, and legal accountability.