(Updated 12/16/2025)
On November 11, 2025, the Latino Medical Student Association-Northeast (LMSA-NE) and 28 other nonprofit organizations across the country filed an amended complaint in a federal class action lawsuit against Flipcause, Inc. in the U.S. District Court for the Central District of California. The case is represented by attorneys Juyoun Han and Eric Baum of the public interest litigation firm Eisenberg & Baum LLP.
The lawsuit alleges that Flipcause, an online fundraising and payment processing platform that markets itself as a “one-stop solution” for nonprofit organizations, has been withholding funds that belong to nonprofit organizations.
LMSA-NE, a 501(c)(3) nonprofit dedicated to supporting Latino medical students, claims that Flipcause is currently withholding over $75,000 of its funds. Despite repeated requests, the organization has received only vague and evasive responses, forcing it to deplete its savings and threatening its ability to hold critical conferences and events.
The lawsuit cites media articles that point to broader pattern of misconduct affecting numerous nonprofit organizations nationwide, with hundreds of thousands of dollars allegedly being withheld. Some nonprofits have been forced to suspend operations, lay off staff, and default on obligations as a result.
Despite the financial damage to its users, Flipcause has publicly downplayed the situation as a temporary “cash flow bottleneck” and maintains that the company is financially “healthy.”
The lawsuit seeks to hold Flipcause and its executives accountable for alleged fraudulent misrepresentations and unlawful conduct, and to immediately recover the funds on behalf of LMSA-NE and a class of similarly affected nonprofit organizations across the country. Organizations or individuals who are similarly affected may contact the legal team below.
Please view the complaint here.
For Impacted Organizations and Stakeholders
Flipcause is a donation-processing platform widely used by nonprofits to manage online fundraising, peer-to-peer campaigns, and donor engagement. For years, thousands of organizations trusted Flipcause to reliably collect and transfer donor contributions. However, over the past year a growing pattern of delayed, withheld, and unprocessed funds has caused widespread financial and reputational harm across the nonprofit sector. This harm is especially troubling because none of these delays were caused by the nonprofits; they were entirely the result of Flipcause’s failure to fulfill its obligations.
The scale of this issue has become increasingly clear. Flipcause has been subject to more than 100 complaints with the Better Business Bureau. In response to this widespread harm, a unified coalition of affected nonprofits is now pursuing legal action to hold Flipcause accountable and ensure that donor contributions reach their intended beneficiaries. We are in touch with the California Attorney General’s office which has recently issued a cease and desist letter to Flipcause, and litigation is actively underway. This litigation seeks to protect the integrity of charitable giving and restoring trust within valuable communities nationwide. Donors and stakeholders of all affected organizations are standing together to secure a fair and transparent resolution.
Media Contact
Juyoun Han ([email protected]) and Eric Baum ([email protected]) at Eisenberg & Baum, LLP (Attorneys for Plaintiff)
Phone: 212-353-8700