Non-Profit missions organization Gospel for Asia announced on Thursday that after three years in court, they will be settling a class-action lawsuit levied against them by paying $37 million and offering up a board seat.
According to a statement released by GFA, the organization was accused of “racketeering, fraud and financial mismanagement.” Christianity Today notes that the organization was facing two lawsuits which claimed that GFA was only sending “13 percent of its donations to the field instead of the oft-promised 100 percent.”
The two suits eventually merged and became a class action suit with more than 200,000 people – those who donated to GFA between January 2009 and September 2018 – looking for reimbursement. Christianity Today reports that the suit originally requested $376 million from GFA. The settlement, however, will require GFA to pay 10 percent of the requested amount – $37 million – to the plaintiffs and surrender a board seat to plaintiff Garland Murphy.
GFA will also be required to remove the founder K.P. Yohannan’s wife Gisela from the board to be replaced by someone approved by both Murphy and Yohannan.
Despite settling in court, GFA is maintaining their innocence. A statement released by the organization reads: “The settlement is not an acknowledgment of guilt by Gospel for Asia and, in fact, the settlement agreement reads in…
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