Appeals Court Blocks Fraud Lawsuit Over Latter-day Saints’ Tithing

A federal appeals court has thrown out a lawsuit accusing The Church of Jesus Christ of Latter-day Saints of fraud in its solicitation of tithing, ruling that the claims could not be separated from religious belief.

The 10th U.S. Circuit Court of Appeals said Tuesday that former members who brought the case were essentially asking the judiciary to determine the truth of church teachings — something the Constitution bars secular courts from doing. At the center of the dispute were allegations that church leaders misled members about the origins of the Book of Mormon and how tithing funds would be spent.

The three plaintiffs, led by Laura Gaddy, argued that their claims fell under federal racketeering statutes, saying they had been deceived through mail and wire communications. Their attorney, Kay Burningham, said she plans to petition the U.S. Supreme Court, though she acknowledged the likelihood of success is slim.

The ruling marks the third time this year that lawsuits over tithing have collapsed in U.S. courts. In January, another appeals court rejected a fraud suit brought by businessman James Huntsman. And in April, a proposed class action involving nine plaintiffs across several states was dismissed by a federal judge in Utah.

For the church, the decision represents another vindication of its legal position that tithing is an expression of faith, not a contractual financial transaction. A church spokesperson said Tuesday’s outcome reaffirmed long-standing precedent that secular courts cannot rule on religious doctrine or history.

Still, the cases reflect mounting frustration among some former members following revelations that the church controls a vast investment reserve, estimated at more than $100 billion. Critics argue that the institution has not been transparent about how member donations are used. But in court, judges have consistently ruled that the questions raised fall into what they call the “forbidden domain” of religion.