10th Circuit affirms dismissal of Mormon church tithing fraud class action as too late

The 10th Circuit affirmed dismissal of a class action accusing the Church of Jesus Christ of Latter-day Saints of fraudulently diverting tithing donations, including $1.4 billion toward Salt Lake City's City Creek Mall, ruling the plaintiffs filed roughly eight months too late. The panel held that widespread media coverage of a 2019 whistleblower report to the IRS put donors on sufficient notice, even though the named plaintiffs said they only learned of the issue after a May 2023 60 Minutes report.

The whistleblower, a former employee of the church's investment arm Ensign Peak Advisors — which now manages over $100 billion — alleged the church underreported asset values and funneled charitable donations into commercial ventures via shell companies. The SEC fined the church $5 million in 2023 without requiring an admission of wrongdoing.

The court did not rule on whether fraud actually occurred, only that the clock had run out on these particular plaintiffs; other donors who sued earlier are still proceeding.

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