OKLAHOMA CITY (Jan. 13, 2026) – Attorney General Gentner Drummond praised the court’s decision today to dismiss a frivolous lawsuit filed by Gov. Kevin Stitt against ClassWallet, the company he blamed for his own administration’s failures to manage funds intended to help families with educational expenses during the Covid-19 pandemic.
U.S. District Judge Joe Heaton dismissed the case today, noting its failure to state a claim upon which relief could be granted. After reviewing the case, Drummond withdrew the Attorney General's Office from the litigation in December, having concluded the claims lacked legal merit.
“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.”
An audit by the U.S. Department of Education Office of Inspector General (OIG) found questionable expenditures and processes surrounding $31 million in Governor’s Education Emergency Relief (GEER) funds. A separate audit from State Auditor and Inspector Cindy Byrd confirmed the deep concerns regarding state actors’ lack of oversight and responsibility for these funds. Auditor Byrd’s report identifies 39,634 items, including video game consoles, home appliances, furniture, and Christmas trees, totaling $1.7 million that were improperly purchased and did not have an educational purpose.
In today’s dismissal, Judge Heaton wrote, “The complaint is devoid of underlying facts regarding the nature of payments allowable or not allowable under the Bridge of Gap grant program. The court concludes the factual allegations, viewed in the State’s favor, are not sufficient to state a plausible breach of contract claim based on authorizing payments not within the scope of the Bridge the Gap grant program.”
