Oklahoma leaders have refiled a lawsuit against an out-of-state vendor the governor blames for failing to prevent education funds from being misspent.
The Florida-based company, ClassWallet, has denied wrongdoing throughout the yearslong saga. Federal and state auditors said officials working for the state government, not the company, were at fault for failing to place proper guardrails on an $8 million COVID-19 stimulus program.
Regardless, Gov. Kevin Stitt announced Monday evening the state is again suing Kleo Inc., which does business as ClassWallet.
“A vendor, which said it would eliminate the possibility of fraudulent use of grant funds, didn’t uphold its end of the contract and taxpayer dollars were misused,” Stitt said. “We have to hold this vendor responsible and protect Oklahoma taxpayers from being left holding the bill.”
The Office of Management and Enterprise Services filed the lawsuit Monday in Oklahoma County District Court, alleging a breach of contract.
ClassWallet was unable to return a request for comment Monday evening.