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Embattled Southlake, TX-based Gateway Church is facing a lawsuit that was submitted Oct. 11, demanding that the church refund member donations, known as tithes, Amelia Mugavero of CBS News reported.
Attorneys representing the plaintiffs report a significant increase in the number of Gateway members now seeking refunds.
The lead counsel for the class-action lawsuit told CBS that the case is centered on fraud and breach of contract, and that the church’s refusal to grant access to financial records and claiming that returning the money is illegal, is simply absurd.
This lawsuit adds to a growing list of challenges facing the North Texas megachurch in 2024.
Former senior pastor Robert Morris resigned in June after allegations surfaced regarding his inappropriate behavior toward a 12-year-old girl in the 1980s. His resignation prompted other high-profile members of Gateway, including his son and daughter-in-law, to step down, and several members to leave the church. Executive Pastor Kemtal Glasgow also resigned over an unspecified “moral issue.” The church is now dealing with additional lawsuits, including one alleging child sexual abuse by a youth group member.
Addressing concerns during a Saturday service, Gateway Church elder Tra Willbanks spoke about the church’s finances.
During the sermon, Willbanks announced that the church had hired the Evangelical Council for Financial Accountability to conduct an independent review of its financial ethics. He also noted that Gateway has had its financial records independently audited since 2005.
This follows the recent filing of a class-action lawsuit against Gateway Church.
The lawsuit, led by a church member and CPA who worked in Gateway’s global ministries sector, alleges that out of the church’s $100 million annual revenue, only $3 million was allocated to global missions and ministries. This contrasts with former lead pastor Robert Morris’ claim that 15%, or approximately $15 million, was directed to global ministries.
The CPA whistleblower claims that Gateway did not conduct audits during his time on staff from 2011 to 2014. Instead, he claimed the church performed financial reviews, which are not designed to detect errors or fraud.
Now, hundreds more church members are seeking refunds of their tithes, in line with promises Morris made to return donations to any dissatisfied members.
“If you’re not fully satisfied at the end of that year, I’ll give you your money back,” Morris promised at a 2023 convention.
The class-action lawsuit will now be reviewed by a federal judge, who will determine if Gateway Church is required to issue the requested refunds.
