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Oklahoma attorney general drops ClassWallet lawsuit to reassess blame

Federal audit on Oklahoma education spending
Posted at 10:51 AM, Feb 01, 2023
and last updated 2023-02-01 11:51:54-05

OKLAHOMA CITY — Oklahoma Attorney General Gentner Drummond dismissed a lawsuit Tuesday aimed at ClassWallet over the state's handling of millions of federal COVID-19 relief dollars.

Former Attorney General John O'Connor filed the suit in August following a federal audit that found "questionable" spending and processes involving $31 million in Governor's Education Emergency Relief (GEER) funds. The report said funding meant to help families with education expenses were used on items such as video game consoles, home appliances, furniture, smartphones and Christmas trees.

The lawsuit accused the Florida-based vendor ClassWallet of mishandling the situation. Drummond dismissed it and said his office plans to hold those responsible accountable.

“After a thorough review of this matter, I have concluded that the lawsuit filed by the previous Attorney General is almost wholly without merit,” Drummond said. “It is clear that a number of state actors and other individuals are ultimately responsible for millions in misspent federal relief dollars.”

Drummond's office said Oklahoma’s handling of GEER funds is expected to be addressed by State Auditor and Inspector Cindy Byrd in the State of Oklahoma Single Audit. The Single Audit is an annual review of all federal funds expended for the fiscal year and generally is submitted between March and July.

“While the lawsuit has been dismissed, this matter is far from concluded,” Drummond said. “My office will continue engaging with various state and federal agencies to investigate this egregious misuse of tax dollars.”

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