Core Viewpoint - Stride, Inc. is facing a class action lawsuit for securities fraud, which has led to significant stock price drops due to alleged violations of federal securities laws [2][4]. Company Overview - Stride, Inc. is an education technology company that provides an online platform for students across the U.S. [5]. Allegations and Impact - The lawsuit claims that Stride inflated enrollment numbers by retaining "ghost students" to secure state funding and ignored compliance requirements, leading to poor customer experiences and higher withdrawal rates [5][6]. - Stride's stock dropped by $18.60 (over 11%) on September 15, 2025, following the announcement of the fraud complaint, and further plummeted by $83.48 (over 54%) on October 29, 2025, after admitting to issues that resulted in 10,000-15,000 fewer enrollments [6][7]. Legal Proceedings - Investors have until January 12, 2026, to request to lead the case in the U.S. District Court for the Eastern District of Virginia [4]. - The lawsuit is filed under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 [4]. Financial Implications - The company's outlook has been described as "muted" compared to prior years due to the impact of the alleged fraud and customer experience issues [7].

Core Viewpoint - Rosen Law Firm is reminding investors who purchased Stride, Inc. securities during the specified Class Period of the upcoming lead plaintiff deadline for a class action lawsuit [1][3]. Group 1: Class Action Details - Investors who bought Stride securities between October 22, 2024, and October 28, 2025, may be eligible for compensation without any out-of-pocket fees through a contingency fee arrangement [2]. - A class action lawsuit has already been filed, and interested parties must move the Court to serve as lead plaintiff by January 12, 2026 [3]. Group 2: Law Firm Credentials - Rosen Law Firm emphasizes the importance of selecting qualified legal counsel with a successful track record in securities class actions, highlighting its own achievements, including the largest securities class action settlement against a Chinese company [4]. - The firm has consistently ranked highly in securities class action settlements, recovering hundreds of millions of dollars for investors, including over $438 million in 2019 alone [4]. Group 3: Case Allegations - The lawsuit alleges that during the Class Period, Stride made misleading statements about its products and services, inflating enrollment numbers and cutting staff costs beyond statutory limits, which led to damages for investors when the truth was revealed [5].

Core Viewpoint - A class action lawsuit has been filed against Stride, Inc. for securities fraud, following significant stock drops attributed to potential violations of federal securities laws [1][2]. Company Overview - Stride, Inc. is an education technology company that provides an online platform for students across the U.S. [3]. Allegations - The lawsuit claims that Stride inflated enrollment numbers by retaining "ghost students," failed to comply with employee background checks and licensure laws, and provided a poor customer experience leading to higher withdrawal rates and lower conversion rates [3][4]. Stock Performance - On September 14, 2025, Stride's stock dropped by $18.60, or over 11%, from $158.36 to $139.76 per share following the fraud allegations [4]. - On October 28, 2025, Stride admitted to issues with customer experience, resulting in an estimated 10,000-15,000 fewer enrollments, causing the stock to plummet by $83.48, or more than 54%, from $153.53 to $70.05 per share [5]. Legal Proceedings - Investors have until January 12, 2026, to request to lead the case in the U.S. District Court for the Eastern District of Virginia [2].

Core Viewpoint - Rosen Law Firm is reminding investors who purchased Stride, Inc. securities during the specified Class Period of the upcoming lead plaintiff deadline on January 12, 2026, for a class action lawsuit [1]. Group 1: Class Action Details - Investors who bought Stride securities between October 22, 2024, and October 28, 2025, may be eligible for compensation without any out-of-pocket fees through a contingency fee arrangement [2]. - A class action lawsuit has already been filed, and interested parties can join by contacting Rosen Law Firm [3][6]. - The lead plaintiff must file a motion with the Court by January 12, 2026, to represent other class members in the litigation [3]. Group 2: Law Firm Credentials - Rosen Law Firm emphasizes the importance of selecting qualified legal counsel with a proven track record in securities class actions, highlighting its own success in this area [4]. - The firm has achieved significant settlements, including the largest securities class action settlement against a Chinese company, and has consistently ranked highly in terms of settlements since 2013 [4]. - In 2019, Rosen Law Firm secured over $438 million for investors, showcasing its capability in recovering funds for clients [4]. Group 3: Case Allegations - The lawsuit alleges that Stride made misleading statements regarding its products and services, inflating enrollment numbers and cutting staff costs beyond statutory limits, which led to damages for investors when the truth was revealed [5].

Market Overview - The shift towards hybrid and cloud-based learning systems, focusing on adult learning programs in addition to K-12 offerings, is favorable for U.S. education-services companies like Stride, Inc. and Grand Canyon Education, Inc. [1] Stride, Inc. (LRN) - Stride is enhancing its career learning program through an AI adaptive platform while addressing technical issues to improve long-term enrollment and revenue visibility [2] - In Q1 of fiscal 2026, Stride's Career Learning segment saw a revenue increase of 16.3% year-over-year to $257.8 million, with enrollments rising by 20% [4] - The company is also focusing on affordable learning options, launching free ELA tutoring for second and third graders to enhance reading and communication skills [6] - However, Stride faced challenges at the start of fiscal 2026 due to technical glitches, resulting in approximately 10,000-15,000 fewer enrollments than expected [7] Grand Canyon Education, Inc. (LOPE) - Grand Canyon Education benefits from a diversified programmatic approach, with healthcare making up nearly 30% of total enrollments, and is expanding into various fields including business and technology [8] - The ABSN platform is an efficient system for enrolling advanced-standing students into nursing programs, with over 19,400 students currently enrolled [10] - The company is adapting its marketing strategies to focus on social media outreach, which is more cost-effective than traditional recruiting methods [11] - Despite a strong portfolio, Grand Canyon Education is facing challenges from rising costs and a decline in revenue per student in certain segments [12] Stock Performance & Valuation - Over the past six months, Grand Canyon Education's share price has outperformed Stride's, although both stocks are on a declining trend [13] - Stride is trading below Grand Canyon Education on a forward 12-month price-to-earnings (P/E) ratio basis [14] - The earnings estimates for Stride have decreased over the past 30 days, while Grand Canyon Education's estimates have trended upward, reflecting year-over-year growth of 12.9% and 11.2% for 2025 and 2026, respectively [18][19] Investment Comparison - Stride's hybrid K-12 and career learning ecosystem shows long-term potential, but technical failures have impacted near-term growth and earnings estimates [21] - Grand Canyon Education presents a more stable growth profile with strong program breadth and rising earnings estimates, despite facing margin pressures from higher costs [23] - Overall, Grand Canyon Education is viewed as a more compelling investment opportunity compared to Stride, which carries execution risks [24]

Core Viewpoint - A class action lawsuit has been filed against Stride, Inc. for securities fraud, following significant stock drops attributed to alleged violations of federal securities laws [1][3]. Company Overview - Stride, Inc. is an education technology company that provides an online platform for students across the U.S. [4]. Allegations and Stock Impact - The lawsuit claims that Stride inflated enrollment numbers by retaining "ghost students" to secure state funding and ignored compliance requirements, leading to poor customer experiences and higher withdrawal rates [4][5]. - Following the filing of the complaint on September 14, 2025, Stride's stock dropped by $18.60 per share, or over 11%, from $158.36 to $139.76 [5]. - On October 28, 2025, Stride acknowledged that poor customer experiences led to an estimated 10,000-15,000 fewer enrollments, resulting in a further stock drop of $83.48 per share, or more than 54%, from $153.53 to $70.05 [6]. Legal Proceedings - Investors have until January 12, 2026, to request to lead the case in the U.S. District Court for the Eastern District of Virginia [3]. - The lawsuit is titled MacMahon v. Stride, Inc., et al., No. 1:25-cv-02019 [3]. Investor Actions - Investors are encouraged to submit their information to the law firm representing the class action, with no upfront costs for shareholders [8].

Core Viewpoint - Rosen Law Firm is reminding investors who purchased Stride, Inc. securities during the specified Class Period of the upcoming lead plaintiff deadline for a class action lawsuit [1][3]. Group 1: Class Action Details - Investors who bought Stride securities between October 22, 2024, and October 28, 2025, may be eligible for compensation without any out-of-pocket fees through a contingency fee arrangement [2]. - A class action lawsuit has already been filed, and interested parties must move the Court to serve as lead plaintiff by January 12, 2026 [3]. Group 2: Law Firm Credentials - Rosen Law Firm emphasizes the importance of selecting qualified legal counsel with a proven track record in securities class actions, highlighting its own achievements, including the largest securities class action settlement against a Chinese company [4]. - The firm has consistently ranked highly in securities class action settlements, recovering hundreds of millions of dollars for investors, including over $438 million in 2019 alone [4]. Group 3: Case Allegations - The lawsuit alleges that during the Class Period, Stride made misleading statements about its products and services, inflating enrollment numbers and cutting staff costs beyond statutory limits, which led to damages for investors when the truth was revealed [5].

Core Viewpoint - The lawsuit against Stride, Inc. alleges that the company misled investors regarding its operational health and compliance, leading to a significant stock decline of over 54% following damaging disclosures [1][4]. Summary by Relevant Sections Allegations - Stride is accused of inflating enrollment figures by retaining "ghost students" and failing to disclose operational and compliance failures, which artificially inflated its stock price [2][4]. - The company allegedly ignored compliance by increasing student-to-teacher ratios beyond required limits and neglecting mandated special education services [6]. Key Events - A public report on September 14, 2025, revealed a lawsuit by Gallup-McKinley school district alleging fraud, causing Stride's stock to drop by 11% [6]. - On October 28, 2025, Stride announced severe operational issues due to a failed platform upgrade, resulting in a stock crash of over 54% in one day [6]. Investor Information - Investors who purchased Stride securities between October 22, 2024, and October 28, 2025, and suffered losses may be eligible to serve as Lead Plaintiff in the class action lawsuit [5][6]. - The deadline for filing a motion for Lead Plaintiff is January 12, 2026 [6]. Whistleblower Information - Individuals with non-public information regarding Stride are encouraged to assist in the investigation or utilize the SEC Whistleblower program, which offers rewards up to 30% of any successful recovery [7].

Core Insights - Stride, Inc.'s Career Learning segment has shown significant growth, with enrollments increasing by 20% year over year to 110,000 and revenues rising by 16.3% to $257.8 million in Q1 of fiscal 2026, reflecting a shift in U.S. education towards career-aligned pathways [1] - Adjusted EBITDA for the same period grew by 29.2% year over year, although the company faced challenges due to a large-scale technology platform overhaul, which increased operating expenses and withdrawal rates [2][3] - The long-term outlook remains positive, with expectations for platform stabilization and continued demand in Career Learning, potentially leading to margin expansion in fiscal 2027 [4] Company Performance - Stride's competitive position in the career learning and K-12 services market is strong, particularly due to its integrated model that combines K-12 education with career learning, which is not fully replicated by competitors [5][7] - The company faces competition from American Public Education, which targets specific adult markets, and Coursera, which offers flexibility and global recognition [6][7] - Stride's stock has underperformed, dropping 61.4% over the past three months, and currently trades at a forward P/E ratio of 7.42, indicating a discount compared to industry peers [8][11] Earnings Outlook - Earnings estimates for fiscal 2026 and 2027 have been revised downwards by 4.8% and 8.3%, respectively, due to ongoing operational challenges and a muted enrollment growth outlook [12] - Despite the downward revisions, the estimates still imply year-over-year improvements of 3.6% for fiscal 2026 and 6.2% for fiscal 2027 [13]

Core Viewpoint - A class action lawsuit has been filed against Stride, Inc. for securities fraud, alleging significant stock drops due to potential violations of federal securities laws [1][2]. Company Overview - Stride, Inc. is an education technology company that provides an online platform for students across the U.S. [3]. Allegations - The lawsuit claims that Stride inflated enrollment numbers by retaining "ghost students," ignored compliance requirements, and had a poor customer experience leading to higher withdrawal rates and lower conversion rates [3][4]. Stock Performance - On September 14, 2025, a report of fraud allegations caused Stride's stock to drop by $18.60, or over 11%, from $158.36 to $139.76 per share [4]. - Following Stride's admission of poor customer experience on October 28, 2025, the stock plummeted by $83.48, or more than 54%, from $153.53 to $70.05 per share [5]. Legal Proceedings - Investors have until January 12, 2026, to request to lead the case in the U.S. District Court for the Eastern District of Virginia [2]. - The lawsuit is captioned MacMahon v. Stride, Inc., et al., No. 1:25-cv-02019 [2]. Impact on Business - Stride estimated a loss of approximately 10,000-15,000 enrollments due to the issues raised, leading to a muted outlook compared to previous years [5].