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A federal judge has dismissed a high-profile lawsuit accusing The Church of Jesus Christ of Latter-day Saints (LDS Church) of misusing tithes and donations to fund for-profit ventures, the Associated Press reported Thursday. The decision for survivors of sexual abuse within the LDS Church who are pursuing justice through civil courts may provide a silver lining.
The judge based his dismissal on procedural grounds, mainly on the claim being filed after the statute of limitations expired. Thus, LDS sexual abuse lawsuits, which center on harm to individuals rather than church finances or doctrine, remain legally viable. In short, survivors still have a clear path to hold the LDS Church accountable in civil court..
The tithing lawsuit involved nine former LDS members who alleged that church leaders misled them about how their contributions would be used, claiming the funds were diverted into a “slush fund” managed by the church’s investment arm, Ensign Peak Advisors. In 2023, the SEC fined Ensign Peak Advisers $4 million and the LDS Church $1 million for using shell companies to obscure the Church’s investment portfolio and failing to properly disclose its assets.
Plaintiffs argued their donations were used to finance commercial projects, such as the upscale City Creek Center and Beneficial Life Insurance (both in Salt Lake City), contrary to public statements that tithes would only support religious or charitable purposes.
While this particular lawsuit was financial in nature, the decision highlights an important point for survivors of LDS-affiliated sexual abuse: courts are drawing clear lines between allegations of financial misrepresentation and those involving negligence or harm to individuals.
Abuse lawsuits typically involve different legal arguments — including claims of institutional cover-up, duty of care, and the church’s failure to report abusers — that do not hinge on the financial doctrine claims rejected in this case. As such, abuse-related lawsuits are not affected by this ruling and may continue to be viable legal pathways for survivors seeking compensation and accountability.
In his ruling, Judge Robert J. Shelby of the U.S. District Court for the District of Utah stated that the plaintiffs failed to present sufficient evidence to support their fraud allegations. More critically, Shelby concluded the case was filed too late, citing the statute of limitations. According to the judge, a 2019 whistleblower report — which first revealed Ensign Peak’s extensive holdings — triggered the three-year deadline to bring the case. Because the lawsuits were filed in 2023 and 2024, Shelby ruled they were time-barred.
“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 learned of matters described in the [Whistleblower] Report at or near the time of its release,” Shelby wrote.
According to the Christian journalism site, The Roys Report, The National Association of Evangelicals, representing 40 evangelical organizations, and the General Conference of Seventh-day Adventists submitted an amicus brief siding with the LDS Church, arguing that judicial inquiries into the use of tithing funds would infringe on religious liberty.
Judge Shelby ultimately sidestepped religious liberty questions, choosing instead to dismiss the case on procedural grounds. The dismissal was issued “with prejudice,” meaning the plaintiffs cannot refile the case. It marks the second recent legal victory for the LDS Church in financial fraud-related cases.
Earlier this year, a panel of judges in the Ninth Circuit Court of Appeals dismissed a $5 million claim brought by James Huntsman, the son of late billionaire philanthropist Jon Huntsman Sr. Like the latest case, Huntsman alleged that the Church misrepresented how his tithing would be used and sought reimbursement.
A third lawsuit may test the boundaries of religious protection further. Filed in 2023 by former member Laura Gaddy and two others, the case alleges that LDS Church leaders intentionally misrepresented the church’s founding narrative to elicit faith and, by extension, financial contributions. Although Judge Shelby also dismissed that case, it has been appealed to the Tenth Circuit in Denver, where a decision is pending.
Responding to the latest dismissal, LDS Church spokesperson Sam Penrod said, “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. 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.”
While the church continues to face scrutiny from both financial whistleblowers and abuse survivors, this ruling serves as a reminder that each case will likely rise or fall on its specific legal merits. For sexual abuse survivors, that means establishing a clear link between Church inaction, institutional policy, and resulting harm — rather than trying to challenge the Church’s finances or theology.
For those who have experienced abuse within the LDS Church, the legal path remains open — but the need to move forward promptly cannot be overstated.
If you or someone you love is a survivor of sexual abuse within the LDS Church, you may still have time to pursue justice. Learn more about your legal rights and how to take action at:
SurvivorsRights.com/mormon-church-sexual-abuse-lawsuits
