OKLAHOMA CITY, Okla. — U.S. District Judge Joe Heaton has dismissed a lawsuit filed by Governor Kevin Stitt against ClassWallet.
The lawsuit, which was initially filed in 2022, followed a federal audit that found "questionable spending" involving $31 million dollars in Education Emergency Relief (GEER) funds. Governor Stitt accused ClassWallet, a Florida-based company, of mishandling the funds. The audit reported that funds intended to help Oklahoma families with education expenses were instead used for home appliances, video games, and furniture.
Oklahoma Attorney General Gentner Drummond withdrew the AG's office from litigation in December, claiming that Governor Stitt's claims lacked legal merit. AG Drummond issued a statement praising Judge Heaton's decision.
“This lawsuit was baseless from the outset and nothing more than a waste of taxpayer dollars,” Drummond said. “Overwhelming evidence has shown that Gov. Stitt and his administration rejected internal controls and oversight as well as failed to use ClassWallet’s available controls, leaving his administration responsible for the payout failures that occurred.”
You can read Judge Heaton's full order online.
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