A federal judge yesterday tossed a suit alleging The Church of Jesus Christ of Latter-day Saints (LDS) misused members’ tithes and offerings to fund for-profit ventures via an alleged “slush fund” disguised as an investment firm.

Nine plaintiffs sued the Utah-based religion, seeking refunds of tithes and other donations.

They claimed church leaders lied when they said contributions would not support church-owned commercial ventures like City Creek Mall, a shopping and residential complex, and Beneficial Life Insurance.

Both The National Association of Evangelicals (NAE), which represents 40 evangelical organizations, and the General Conference of Seventh-day Adventists joined the LDS as an ally. In an amicus brief, the NAE and Adventists argued that having a judge rule on points of religious doctrine, such as the use of tithes and offerings, would weaken religious liberty. 

Yesterday’s ruling is the second in recent months dismissing lawsuits targeting the 17.5 million-member church, commonly known as the Mormons. It is seen as a victory for the church, which has faced a barrage of legal actions since a 2019 whistleblower report surfaced accusations surrounding Ensign Peak Advisors, the church-affiliated nonprofit investment group.

In his ruling, Judge Robert J. Shelby of the U.S. District Court for the District of Utah said the plaintiffs didn’t offer adequate evidence to support their claims. He said the lawsuits, filed in 2023 and 2024, were brought outside of the statute of limitations, triggered by the 2019 news reports.

An Obama appointee to the federal bench, Shelby dismissed the potential class-action claim “with prejudice,” meaning it cannot be refiled.

In January, an 11-judge panel in the Ninth Circuit dismissed a lawsuit by former member James Huntsman that sought the refund of $5 million to the church. Huntsman, a son of late billionaire Jon Huntsman Sr., also claimed Mormon leadership fraudulently said it would not use tithing funds for profit-making enterprises.

Shelby did not base his ruling on constitutional issues, like religious liberty, but instead said the plaintiffs failed to meet the filing deadline, rendering the other arguments “moot.”

The 2019 whistleblower report, Shelby said, triggered both “a deluge of local and national reporting” and started the three-year deadline for filing claims.

“It ‘strains credulity’ that reasonably diligent individuals who had donated substantial sums of money to the Church and were otherwise interested in Church affairs would not have ‘learn(ed) of matters’ described in the (Whistleblower) Report at or near the time of its release,” Shelby wrote.

While the two dismissed cases did not touch the “church autonomy” doctrine, which LDS attorneys said precludes such lawsuits, a third case may get there. A 2023 class action filed by Laura Gaddy and two other ex-Mormons alleges church leaders “intentionally misrepresented its founding to induce the faith of its members” and thus deceptively gain contributions.

Though Shelby dismissed the Gaddy lawsuit, she appealed to the Tenth Circuit in Denver, where a three-judge panel heard oral arguments in September 2024. No decision has yet been handed down in that case.

Meanwhile, the LDS Church reacted to the Thursday decision.

“Tithing donations made by members of The Church of Jesus Christ of Latter-day Saints are an expression of faith and allow the Church to fulfill its divine mission,” church spokesman Sam Penrod said in a statement to El Informe Roys (TRR) via email. “These donations are carefully used and wisely managed, under the direction of senior Church leaders. The legal claims brought against the Church were rightfully dismissed by the court.”

Mark A. Kellner is a reporter based in Mesquite, Nevada. He most recently covered statewide elections for the Correo de Nueva York and was for three years the Faith & Family Reporter for el tiempo de washington. Mark is a graduate of the University of the Cumberlands and also attended Boston University’s College of Communication.