In a dramatic legal turn, the Council on American-Islamic Relations (CAIR), one of the most prominent Muslim civil rights organizations in the United States, faces a major reckoning as it is finally being compelled to open its financial records and disclose its donors—including those allegedly tied to foreign entities. This legal order stems from a defamation suit filed by Lori Saroya, a former chapter leader, which has snowballed into a public relations nightmare for CAIR.
The Boomerang Effect
According to an exclusive report in the New York Post, U.S. Magistrate Judge David Schultz’s ruling on Monday has sent shockwaves through the organization. It allows Saroya’s legal team to investigate CAIR’s donor base, funding sources—including alleged foreign contributions—and even the assets under its management. Jeffrey Robbins, Saroya’s attorney, aptly described the ruling as “the mother of all legal boomerangs.”
“The judge’s meticulous decision underscores the seriousness of this case,” Robbins said, emphasizing the broader implications. The ruling mandates that CAIR reveal documents on potentially concealed foreign funding, alleged donor deception, mismanagement of resources, and claims of workplace retaliation, including allegations of sexual harassment.
BREAKING: CAIR will be forced to open its books and reveal its sources of funding after a defamation suit it filed against a former employee completely backfired.
— Eyal Yakoby (@EYakoby) November 26, 2024
The judge ruled that CAIR’s donors, funding sources, and assets are all within the “scope of permissible discovery.” pic.twitter.com/BQ54H0Q7Gw
Origins of the Legal Battle
CAIR initially sued Saroya, accusing her of orchestrating a “defamation campaign” through social media posts and emails. The organization claimed her statements, which allegedly insinuated foreign funding ties and connections to terrorist groups, hurt its fundraising and partnerships. However, in January 2022, CAIR unexpectedly dropped its lawsuit, citing fears that Saroya’s team would demand access to its donor lists.
Saroya responded with a federal defamation lawsuit, flipping the script on CAIR. Her claims gained significant traction when Judge Schultz ruled that discovery into CAIR’s funding and operations was critical to the case.
CAIR’s Controversial History
Since its establishment in 1994, CAIR has been a polarizing entity. While it portrays itself as a champion of Muslim civil rights, critics argue that its leadership and activities have raised troubling questions. Federal tax filings reveal that CAIR collected over $5 million in charitable contributions in both 2021 and 2022. However, as a tax-exempt nonprofit, it has not been required to disclose donor identities—a policy now under judicial scrutiny.
CAIR National is run by Nihad Awad, who was caught on an FBI wiretap supporting Hamas in 1993.https://t.co/q4IJbihFEu
— Angela Van Der Pluym (@anjewla90) November 19, 2024
CAIR is an unindicted co-conspirator of the Holyland Foundation Trial, where it was linked to Hamas and the Muslim Brotherhood.
CAIR is one of the main… pic.twitter.com/wGFww5SymT
A 2013 Department of Justice report linked CAIR’s leadership to Hamas, a designated terrorist organization, during the Holy Land Foundation trial. Although CAIR denies these claims, its reputation was further tarnished when the White House cut ties with the group in 2023. This followed inflammatory remarks by CAIR co-founder Nihad Awad, who reportedly expressed approval of Hamas’ brutal October 7 terror attacks against Israel, which left over 1,200 dead and thousands of others injured with over 250 taken hostage, of which it is thought that around 100 are still in captivity. Those attacks saw countless incidents of violent sexual abuse by Hamas members and ordinary Palestinians against Israelis, incidents that the United Nations Senior Official Pramila Pateen affirmed, saying "there are reasonable grounds to believe that conflict-related sexual violence — including rape and gang-rape — occurred across multiple locations of Israel and the Gaza periphery during the attacks on 7 October 2023."
Dismissing the international findings, CAIR has spent their efforts trying to turn the narrative around, calling the claims of rape to be a slander against Muslims. In a rebuke of Congressman Josh Gottheimer, a Democrat representing New Jersey who criticized the antisemitic protests at a prominent New Jersey University which has a significant Jewish population, CAIR-NJ civil rights attorney Ayah Zaki said "the Congressman accused Muslim students at Rutgers University of “justifying the rape, murder, beheading, & kidnapping” of Americans, amplifying a long-ago debunked story about “beheaded babies” and playing into dangerous and defamatory anti-Muslim tropes."
Yes! Read Our Report which includes our detailed findings about Saly Abd Alla and antisemitism at CUNYhttps://t.co/SSsbClWX52
— SAFE CAMPUS (@_SAFECAMPUS) November 26, 2024
Additional comments from other CAIR leaders have fueled accusations of antisemitism and support for violence. For instance, CAIR’s Michigan chapter executive director, Dawud Walid, described proselytizing & converting to Jews as a “religious duty,” while the Los Angeles director denied Israel’s right to self-defense during a public sermon.
Allegations of Foreign Influence and Antisemitism
CAIR’s funding has long been a topic of controversy. Investigations suggest significant donations from entities accused of antisemitism and links to extremist groups. Some reports allege that the Islamist nation of Qatar—a known supporter of Hamas—has funneled money to CAIR through shadowy channels.
The Council on American Islamic Relations (CAIR) is a terrorist organization operating as a non-profit charity in the United States of America.
— Brigitte Gabriel (@ACTBrigitte) November 9, 2023
Here is some information on them everyone should be aware of. Please share this far and wide. pic.twitter.com/ubU64aqhkW
A recent analysis by the Capital Research Center unveiled the top progressive contributors to CAIR, with organizations that have histories of antisemitic funding like The Tides Foundation and The Muslim Brotherhood linked Mar-Jac Foundation providing millions. Critics argue that these donors should reconsider their support given CAIR’s alleged associations with antisemitism and extremist rhetoric.
Broader Implications for CAIR
The fallout from Saroya’s lawsuit could be monumental. If CAIR is forced to disclose evidence supporting claims of foreign funding or financial mismanagement, it risks alienating its donor base and losing its nonprofit status. Additionally, the ruling may set a precedent for increased scrutiny of nonprofit organizations accused of concealing financial ties to hostile entities.
I'm glad CAIR's co-founder Nihad Awad admits he support HAMAS
— Amy Mek (@AmyMek) October 28, 2018
HAMAS seeks to eliminate Israel & Jews
Now, anyone who supports CAIR, is funded by CAIR, works with CAIR or puts CAIR on TV can & should be deemed an enabler to evil. Democrats must STOP supporting HAMAS-linked CAIR. pic.twitter.com/4T5iMi1vNC
Saroya, who is seeking at least $75,000 in damages, has also demanded a retraction of CAIR’s 2022 press release, which she claims defamed her. Her legal team remains confident that the forthcoming discovery will vindicate her allegations.
A Moment of Reckoning
For CAIR, this legal battle is more than a courtroom drama—it’s a test of transparency, ethics, and credibility. Judge Schultz’s ruling has opened the door to revelations that could reshape the public perception of the organization. As the case unfolds, it raises urgent questions about the accountability of advocacy groups operating under the banner of civil rights while allegedly harboring ulterior motives.