From Yahoo Finance: 2025-04-17 20:00:00

A federal judge dismissed a lawsuit alleging The Church of Jesus Christ of Latter-day Saints misused donations by investing them instead of using them for charitable purposes. The lawsuit was filed in October 2023 but was dismissed due to a three-year statute of limitations on fraud claims in Utah.

The lawsuit brought renewed scrutiny over how the Mormon church handles its financial holdings, funded by members’ tithing. Plaintiffs wanted an independent entity to oversee donated funds and sought class-action certification.

Church spokesperson Sam Penrod defended the use of tithing donations, stating they are carefully managed under the direction of senior Church leaders. Plaintiffs’ attorney Christopher Seeger expressed concern that the dismissal would make it harder for members to understand how donations are used.

A similar lawsuit was filed in 2021 by James Huntsman, seeking the return of $5 million donated before he left the church. The U.S. Securities and Exchange Commission fined the church and Ensign Peak Advisers $5 million for obscuring the size of the investment portfolio under church control.

The church has previously defended how it handles member contributions, stating that funds go towards various religious purposes. The lawsuit argued that donations were permanently invested and not used for charitable work, including tithes and donations to Ensign Peak Advisors.

Whistleblower David Nielsen’s allegations about Ensign Peak’s handling of funds were publicized by media organizations in 2019-2020. The plaintiffs in the Utah case were aware of the fraud allegations by early 2020 but did not file their case until more than three years later.

Ensign Peak has spent funds only twice in its history, bailing out a life insurance company in 2009 and building a mall in 2010. This information was revealed in the lawsuits filed against the church regarding its financial practices.



Read more at Yahoo Finance: Judge dismisses lawsuit against Mormon church over how it uses donations