According to the lawsuit, a former member of the group filed a complaint with the University of Iowa in February 2017 claiming that he'd been denied a leadership position within the BLinC back in 2016 because he is openly gay. He also filed a similar complaint against 24:7, another Christian student group.
BLinC's president at the time Hannah Thompson admitted to denying the gay student's leadership role, but also said that he wasn't rejected as a "leader" for being gay, but for his "desire to pursue a homosexual... relationship." Long story short, BLinC was kicked off-campus. That decision has hindered its ability to function because of its ineligibility to participate in on-campus recruitment fairs, use campus facilities, or receive university funding.
BLinC has not only sued the University of Iowa, but also Dean of Students Lyn Redington, Assistant Dean of Students Thomas Baker, and IMU Executive Director William Nelson. They are seeking the reinstatement of the group's official recognition and some damages. They are represented by the Becket Fund for Religious Liberty.
Personally, I don't care if Business Leaders for Christ can reject LGBTQ members or leaders. I find it sad that they're ecumenical enough to be led by a female president -- which would get them blackballed from most Christian traditions and denominations --, but not ecumenical enough to accept LGBTQ "leaders" (whatever that means).
And yes, I recognize that they are open to LGBTQ leaders who are celibate. Given that I've belonged to a denomination that's long supported full inclusion of LGBTQ members and leaders and that's supported full same-sex marriage rites and rights, BLinC's enlightened distinction seems terribly old-fashioned and unappealing to me.
I do find it ironic that the group is called Business Leaders in Christ. So you can be a Leader, but not a leader of the Leaders.
Anyway, check out these legal briefs when you have an hour or two. I am curious to see how this lawsuit unfolds.