Gospel for Asia has been facing a class-action lawsuit filed by 200,000 American donors who claim the organization failed to deliver on its promise to send 100% of donations to the field. Although the nonprofit organization had pledged to do so, it only sent 13% of the funds to the field. Regardless, the charity received more than $376 million from its donors. In response, the group settled the case for $35 million in 2019 but kept 90% of the money.
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The Canadian government has ruled against Gospel for Asia and ordered the charity to refund all money collected in the United States and Canada.
It was also ordered to pay a Special Master to conduct an investigation and assess the claims. The case has been filed against the organization and the Canadian government. The lawsuit is still ongoing, but the organization is attempting to resolve the issues. It is not known when it will be settled. If it does, the lawsuit is likely to continue.
While the Canadian government ruled against Gospel for Asia, the lawsuit continues. It alleges that the organization made negligent misstatements to its donors and conspired to misuse donor funds. The charity was able to settle the case for $37 million, but lawyers confirmed that some of the money was stolen from a Canadian donation. It used the money to build a campus in Texas and is now preparing for another class-action suit.
After the complaint was filed in Canada, the ministry’s lawyers found the organization guilty of fraud and a breach of contract.
The ECFA revoked the organization’s membership and shut down the ministry. In its fundraising materials, Gospel for Asia claimed that the money was used to help the cause. However, the lawsuit alleged that the money was funneled to other projects and for-profit entities. Its new headquarters also financed the lawsuit. As a result, it was ordered to pay the fees for the Special Master.
Despite the recent settlement, the Gospel for Asia lawsuit continues to face legal challenges. The company is still fighting the claims in a Canadian court. The plaintiff, Garland D. Murphy, III, MD, and his wife Phyllis Murphy, both filed a class-action lawsuit against the organization. The suit claims that the charity mishandled donor funds, claiming that it had a “massive” international presence, had misused the money.
In Canada, the lawsuit against the ministry has been settled.
The company is required to compensate the victims. As a result, the plaintiffs were compensated in full for the damages they suffered as a result of the fraud. Meanwhile, the defendants paid the legal fees of the Special Master. If the lawsuit is successful, the court has ordered the Gospel for Asia to pay the cost of the Special Master. The costs of the suit are expected to increase significantly.
The legal action against the Gospel for Asia charity has already been settled. It is unlikely that the plaintiffs have lost their cases. In Canada, a class-action lawsuit is filed against the ministry, and the plaintiffs have a right to pursue it. In the United States, a class-action lawsuit filed in Texas is filed against the organization after the church voluntarily settles with the organization. During this litigation, the two sides will settle on the claims based on their agreement.
In Canada, the Gospel for Asia lawsuit was filed by Greg Zentner.
The case is a class-action lawsuit, claiming that the organization did not properly disclose the source of donated funds. The suit relates to an ECFA investigation that lasted four months. During that time, the ECFA ordered the charity to pay the Special Master’s fees. GFA’s lawyers had previously said the organization had received millions of dollars from donors in the U.S. but that it had mismanaged the money.
The lawsuit was filed in the United States because the ministry failed to disclose its donors’ names. A class-action suit is brought against a company that has violated the law. In a class-action lawsuit, the plaintiffs are entitled to recover their damages and must pay attorney’s fees. The ECFA’s decision will affect the rights of the class. In Canada, the government is not responsible for a class-action lawsuit, but the ECFA has ordered the ministry to pay the fees and expenses of a Special Master.
