OKLAHOMA CITY (April 17, 2025) – Legal counsel representing the Tobacco Settlement Endowment Trust (TSET) Fund Board of Investors filed a petition with the Oklahoma Supreme Court today seeking a declaratory judgment after a formal vote of the Board authorized legal action against improper interference by Attorney General Gentner Drummond.
At a special meeting held earlier last week, the TSET Board of Investors voted to accept special legal counsel, appointed by Governor Kevin Stitt under the authority of 74 O.S. § 6 and the Oklahoma Constitution, Article VI, §§ 2 and 8. The Board also voted to authorize this counsel to take all necessary and appropriate legal action to protect the Board’s statutory and constitutional authority to manage TSET investments, the Board noted in a media release today from Oklahoma Treasurer Todd Russ.
As a direct result of this vote, legal counsel today filed a petition with the Oklahoma Supreme Court, responding to the Attorney General’s obstruction of Board-approved investments with Neuberger Berman and Comvest Partners. These investments were initially authorized by the Board last November. Due to delays caused by the AG’s interference, the Board estimates the state has already lost a 13% return differential on $200 million— representing a significant cost to taxpayers and public health funding.
“The people of Oklahoma voted to protect these funds from political interference,” said State Treasurer Todd Russ and Chairman of the TSET Board of Investors. “The Attorney General’s attempt to override a legal investment process — is a direct threat to the constitutional independence of the investment board.”
The Attorney General’s intervention relied on AG Opinion 2006-11, which he has selectively invoked to insert his personal views into a process that was already approved and executed. Notably, an Assistant Attorney General assigned to the Board had previously approved all legal documents related to the investments — including contracts and side letters — before the AG reversed course without citing any legal deficiency.
“This is a textbook conflict of interest,” Treasurer Russ said. “The Attorney General inserted himself into the process after the fact, with no legal reasoning, only personal opinion. That’s not how constitutional governance works, and it’s certainly not how Oklahomans expect their settlement funds to be managed.”
The Supreme Court filing seeks a declaratory judgment confirming the TSET Board of Investors’ independent authority to manage its investments without unwarranted interference. The Board includes the State Treasurer, State Auditor and Inspector, and the Director of the Office of Management and Enterprise Services.
The Tobacco Settlement Endowment Trust Fund was established by a vote of the people to ensure long-term, stable funding for health programs across Oklahoma. The Board of Investors is responsible for safeguarding the fund’s growth and sustainability through responsible investment management.
Attorney General Drummond, a recent republican, is currently campaigning for the position of Oklahoma Governor. Critics have raised questions on both his private business and public career successes that include allegations of “conflict of interest” with today’s accusations being the most specific.