$10 Million Defamation Lawsuit Filed for Newsweek's Alleged Secret Communication with Regulators
On December 11, Olivet University announced its decision to transition to Religious Exempt School status in response to two years of defamatory articles by Newsweek and the unreasonable actions of the California Bureau for Private Postsecondary Education (BPPE). In addition, the university has decided to expand its campuses under Religious Exempt status to New York State, a move welcomed positively within the institution.
In its official statement titled Olivet University Decides on Dec 11 to Continue in California Under Religious Exemption, the university declared: “Olivet University has made the decision as of December 11 to operate under religious exemption in California” which refers to CEC §94874(e) of the California Education Code, under which schools are allowed to operate religious classes.
Religious Exempt Schools are institutions exempt from standard regulations required for private universities under state law. In California, these schools can offer programs of degrees, such as “associate of religious studies,” “bachelor of religious studies,” “master of divinity,” or “doctor of divinity.” while operating autonomously according to their religious mission, without adhering to the same requirements imposed on general private institutions.
An example of Religious Exempt Schools in California is the Southern Baptist-affiliated Gateway Seminary (formerly Golden Gate Bridge Theological Seminary, GGBTS).
Religious Exempt status is automatically applied to institutions that match the criteria. Institutions affiliated with denominations, churches, missions, or religious research organizations can qualify. Unlike general private universities, they are not subject to BPPE’s mandatory five-year periodic reassessments. This simplified process and lower operational costs have made Religious Exempt Schools increasingly popular among religious educational institutions.
An individual affiliated with Olivet University stated, "The decision to transition to Religious Exempt status was driven not only by the advantages of this system but also by BPPE's unreasonable actions."
He continued, "Since 2022, Newsweek has published more than 20 defamatory articles targeting the Christian university to benefit the magazine’s CEO in an ownership dispute. It was later revealed that BPPE officials and Newsweek were exchanging emails and working together to attack this institution."
Criticism has now begun to mount against BPPE, a state agency tasked with overseeing and protecting educational institutions, for allegedly acting under the influence of Newsweek. On December 13, BPPE officially notified Olivet University of its decision to revoke the institution's license, citing 13 academic deficiencies.
An Olivet University spokesperson confirmed that the school had already applied for Religious Exempt School verification on December 11, effectively ending the prolonged debate over its licensing status. The spokesperson added, "Ironically, this move has left Newsweek, which had been relentlessly attacking the university, dismayed and embarrassed."
The affiliated individual also criticized BPPE’s evaluation process. According to his knowledge, the federal accrediting agency ABHE (Association for Biblical Higher Education) conducted a thorough three-day evaluation in December 2023 with eight reviewers and awarded the institution a Good Standing. In stark contrast, BPPE’s team of four inspectors visited in December 2022 for only a single day and revoked the license.
The significant discrepancy between ABHE’s and BPPE’s evaluations has raised concerns, particularly after the recent exposure of email exchanges between BPPE officials and Newsweek journalists, which appear to spark controversy.
Separately from its transition to Religious Exempt status, Olivet University has filed a $10 million defamation lawsuit against Newsweek.
Meanwhile, the New York-based media outlet HNGN criticized Newsweek’s reporting, labeling it as fake news.
