Class Action: Members Sue Gateway Church for Financial Fraud

Dortch Lindstrom Livingston: Proposed class action lawsuit alleges donations to ministry fund misused

A group of members of Gateway Church have filed a proposed class action lawsuit against the evangelical megachurch and four current and former church leaders. The lawsuit, filed in federal court in Sherman, Texas, alleges that the church falsely promised members that 15% of congregational tithe would be spent on foreign missionary work when, in fact, it was not.

According to the lawsuit, this percentage would represent at least $15 million annually from what is believed to be the church’s $100 million annual revenue. However, church leaders have never allowed a professional, independent audit of the foreign ministry fund’s assets, despite numerous discrepancies that have been reported in the church’s accounting procedures.

“These individuals were faithful contributors for years and simply want Gateway to open its books, answer questions, and demonstrate that the church is a good steward of these funds,” says Micah Dortch, attorney for the plaintiffs and partner in the Dallas-based firm of Dortch Lindstrom Livingston. “Church leaders have promised on multiple occasions that if any member of the congregation is not happy with how those contributions are being used they can get that money back. But those requests have been repeatedly ignored.”

In addition to Gateway Church, defendants named in the litigation are:

• Robert Morris, the former Senior Pastor and founder of Gateway who resigned in June 2024.
• Tom Lane, former Executive Senior Pastor and Elder.
• Kevin Grove, a former Associate Senior Pastor and Elder who took a church-imposed leave of absence as an Elder in June 2024.
• Steve Dulin, a former Associate Senior Pastor and Elder who was removed in July 2024.

Gateway Church reportedly has 100,000 members across nine North Texas campuses and has been at the center of controversy in recent months. In June, an Oklahoma woman accused longtime senior pastor Robert Morris of abusing her, starting when she was 12 years old, which led to his resignation four days later. Subsequent investigations led to announcements of permanent terminations or temporary leave for other church staff.

The case is Leach et al v. Gateway Church et al, No. 4:24-cv-00885, filed in U.S. District Court for the Eastern District of Texas in Sherman. Co-counsel for the plaintiffs includes Lu Pham of Pham Harrison LLP in Fort Worth.

About Dortch Lindstrom Livingston

Dortch Lindstrom Livingston Law Group represents a wide range of corporate and professional entities in complex commercial litigation and personal injury cases. Based in Texas, the firm handles nationwide cases with a commitment to providing skillful representation, zealous advocacy, and comprehensive solutions tailored to each client’s needs. For more information, visit https://dll-law.com.

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