NOTE: A lawsuit represents only one side of a story.
SALT LAKE CITY (ABC4) — On Friday, Jan. 17, attorneys for The Church of Jesus Christ of Latter-day Saints were in federal court seeking to strike a lawsuit challenging the organization’s use of tithing donations. The final verdict is pending.
In this suit, the plaintiffs — a group of current or former members of the church — are challenging how church leaders have used tithing and other donations. In the Latter-day Saint faith, many members of the religion donate 10% of their income to the church each year, a form of donation referred to as paying tithing.
PREVIOUS COVERAGE: Lawyers file to dismiss lawsuit over tithing fraud against LDS church, investment arm
Plaintiffs allege that the defendants — the Latter-day Saint church and its investment arm Ensign Peak Advisors — committed fraud by investing a portion of donated funds and allowing those funds to accrue interest over time, instead of immediately using those donations for religious or humanitarian works, according to court documents.
According to the church, money received through tithing is said to be “sacred” and is used to help it “carry out its mission.” In its motion, the church argued that tithing used in its investment branch is important to its long-term goals, including building church facilities (such as chapels and temples) and pursuing humanitarian efforts.
The plaintiffs are seeking a class action lawsuit — essentially attempting to sue the church on behalf of millions of its members in the United States who have donated money since 1998.
However, in its motion to strike, the church argues the plaintiffs’ claims are not suitable for class action treatment due to the conflicts of interest between the plaintiffs and “most members of the proposed class” — with the “proposed class” being those who have paid tithing since 1998.
The church has asked the court to strike the allegations, stating the plaintiffs and their counsel cannot “adequately represent the faithful Church members who make up the vast majority of the proposed class.”
“Plaintiffs must show that at every point in the litigation, they ‘will fairly and adequately protect the interests of the class,’” the motion reads. “But the vast majority of putative class members are faithful Church members who give tithes as a fundamental part of their faith and who not only oppose this lawsuit but view it as an attack on their own religious beliefs, their Church and the Church leaders they support.”
Defendants also argued a class action suit would “violate the First Amendment” by forcing the release of names and identities of tithe-paying church members, in addition to how much they have donated.
The church’s attorney and Judge Robert Shelby argued whether this argument has any legal standing, and if all religious organizations should be exempt from lawsuits like this one.
It is unknown when the verdict will be released. ABC4.com has reached out to both parties but has not heard back at the time of publication due to the ongoing litigation.
Background
The LDS church and Ensign Peak are at the center of several lawsuits, with one recently being filed in Jan. 2024. The motion to strike was filed by the counsel for The Church of Jesus Christ of Latter-day Saints and Ensign Peak Advisors (who are the defendants in the tithing fraud lawsuit) on Sept. 10, 2024.
That same day, lawyers for the defendants also filed to have the whole case dismissed with prejudice, which means the plaintiffs would be unable to refile the same claim in court in the future.
According to the Associated Press, Ensign Peak Advisors was created in 1997 and (as of 2023) had grown to more than $100 billion in value. Since its inception, it has reportedly spent funds twice: To save a failing, church-owned life insurance company in 2009, and to build City Creek Center from 2010 to 2014, the AP reported.
The defense also argued the plaintiffs said they were unaware of Ensign Peak’s existence until 2019 and ultimately said all the claims against Ensign Peak should be dismissed.
Garett Hodson, Jonathan May, Yeonseung Kim, and the Associated Press contributed to this report.
Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
For the latest news, weather, sports, and streaming video, head to ABC4 Utah.