TBA Law Blog


Posted by: Julia Wilburn on Jul 24, 2026

Attorney General (AG) Jonathan Skrmetti's office has moved to dismiss Memphis-Shelby County Schools' (MSCS) lawsuit and dissolve the July 1 order that paused the state's takeover of the district, arguing that a July 8 independent audit revealing over $119 million in policy violations shows "circumstances have materially changed" since the pause was granted. The audit identified roughly $54.1 million in potential fraud, waste and abuse — much of it tied to a 2022 custodial contract — and $65 million in transactions possibly violating internal policy or federal grant rules. According to The Daily Memphian, the motion further contends that Judge Waverly D. Crenshaw Jr.'s order violated federal procedural rules and lacked clarity on duration. The filing is separately seeking dismissal of the broader constitutional challenge by arguing MSCS and Shelby County cannot invoke 14th Amendment protections against the state that created them, and that the takeover law is not racially discriminatory. A scheduling hearing before a magistrate judge is set for July 24, with a substantive hearing on the injunction unlikely before August given deposition requirements.