Plaintiffs Appeal LDS Church Tithing Case to U.S. Supreme Court

UPDATE: Plaintiffs suing the Church of Jesus Christ of Latter-day Saints over alleged misappropriation of tithing funds have just announced their intention to appeal to the U.S. Supreme Court. This follows a dismissal of their case by the District of Utah Court, which has heightened tensions around the church’s financial practices.

The Tenth Circuit Court of Appeals previously declined to hear the case in August, leading plaintiffs to request a rehearing. This request was denied, solidifying the District Court’s ruling. Kay Burningham, the attorney representing the plaintiffs, confirmed plans to petition the Supreme Court, which historically accepts only about 1% of cases presented.

This lawsuit has roots in a class action initiated by Laura Gaddy in 2019, which aimed to address claims regarding the church’s financial transparency and historical teachings. Gaddy’s subsequent civil racketeering complaint in 2020 was partially dismissed, but allowed certain claims concerning tithing to proceed.

The plaintiffs allege that the church misrepresented the use of tithing funds and its own history, particularly regarding founding events and teachings. Significant claims include accusations of fraud related to the financial handling of tithing, asserting that funds were not used for charitable purposes as indicated to members.

In recent years, this case has become part of a larger pattern of lawsuits against the church, following accusations from former Ensign Peak Advisors manager David Nielson, who claimed that billions in tithes were misused, including funding the City Creek Center mall in downtown Salt Lake City.

In a related case, James Huntsman, brother of former Utah Governor Jon Huntsman Jr., sought the return of $5 million in tithes, arguing misuse of funds. In February 2023, the church settled with the U.S. Treasury for $5 million over issues regarding its investment reporting.

This latest appeal presents critical implications for the church and its members. As the Supreme Court prepares to potentially review the case, the outcome could reshape the landscape of religious financial accountability and transparency.

As developments unfold, all eyes will be on the Supreme Court’s response, with many wondering how this will impact the ongoing scrutiny of the church’s financial operations. Stay tuned for further updates.