Core Viewpoint - A class action lawsuit has been filed against Stride, Inc. and its senior executives for securities fraud, following significant stock drops attributed to potential 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," ignored compliance requirements, and had a poor customer experience leading to higher withdrawal rates and lower conversion rates [4]. - On September 14, 2025, a report of fraud allegations caused Stride's stock to drop by $18.60 per share, over 11%, from $158.36 to $139.76 [5]. - Following an admission of poor customer experience on October 28, 2025, Stride's stock plummeted by $83.48 per share, 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 Information - Investors are encouraged to seek additional information regarding their legal options and can submit their information to the law firm representing the class action [2][7]. - The law firm operates on a contingency fee basis, meaning there are no upfront costs for shareholders [7]. Law Firm Background - Bleichmar Fonti & Auld LLP is a leading international law firm specializing in securities class actions and has a strong track record, including recovering over $900 million from Tesla's Board of Directors [8].

Core Viewpoint - K12 (LRN) has shown a 6.3% increase in stock price over the past four weeks, with a mean price target of $105 indicating a potential upside of 57.7% from the current price of $66.59 [1] Price Targets and Estimates - The mean estimate consists of four short-term price targets with a standard deviation of $24.49, where the lowest estimate is $75.00 (12.6% increase) and the highest is $125.00 (87.7% increase) [2] - A low standard deviation among price targets suggests a high degree of agreement among analysts regarding the stock's price movement [9] Analyst Sentiment and Earnings Estimates - Analysts are optimistic about LRN's earnings prospects, as indicated by a positive trend in earnings estimate revisions, which has historically correlated with stock price movements [11] - Over the last 30 days, one earnings estimate has increased, leading to a 1.1% rise in the Zacks Consensus Estimate for the current year [12] Zacks Rank and Investment Potential - LRN holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimate factors, indicating strong potential for upside [13] Caution on Price Targets - While price targets are a common metric for investors, relying solely on them can be misleading, as analysts may set overly optimistic targets due to business incentives [7][8][10]

Core Insights - Stride, Inc. (LRN) is focusing on margin expansion and operational discipline despite facing technical issues and flat revenue per enrollment year-over-year [1][2] - The company reported an adjusted operating margin of 13.1%, up 250 basis points year-over-year, and an adjusted EBITDA margin of 17.5%, up 230 basis points [1] - Adjusted earnings per share (EPS) reached $1.52, compared to $1.09 in the same quarter last year, indicating strong operating leverage driven by enrollment growth and cost control [1] Revenue and Enrollment - Revenue per enrollment is expected to remain flat at approximately $9,677 for fiscal 2026 due to various factors including state mix and technical issues [2] - The company anticipates 10,000-15,000 fewer enrollments in fiscal 2026 due to platform implementation issues leading to higher withdrawals [2] Cost Management - Stride's selling, general and administrative (SG&A) expenses are growing at a slower rate than revenue, with expectations for SG&A as a percentage of revenues to decline in fiscal 2026 [3] - The SG&A metric decreased by 270 basis points year-over-year in the first quarter of fiscal 2026, primarily due to reduced bad debt expense and increased revenue leverage [3] Margin Sustainability - Flat revenue per enrollment does not indicate weak fundamentals; resolving platform issues and improving enrollment quality could sustain Stride's margin-focused strategy [4] - The company's ability to convert stable funding into expanding operating income suggests that disciplined execution may drive shareholder value in the near term [4] Earnings Estimates - Analysts have revised LRN's earnings estimates for fiscal 2026 and fiscal 2027 upward in the past 30 days, reflecting optimism about the company's recovery efforts [5] Stock Performance - Stride's shares have increased by 6.3% over the past month, outperforming the Zacks Schools industry and the broader Zacks Consumer Discretionary sector [7] Valuation - LRN stock is currently trading at a forward 12-month price-to-earnings (P/E) ratio of 7.64, which is lower than competitors like Strategic Education, Inc. (12.47) and American Public Education, Inc. (16.95) [11][13]

Core Viewpoint - Hagens Berman is reminding investors in Stride, Inc. (NYSE: LRN) about the deadline of January 12, 2026, to apply for lead plaintiff status in a securities class action lawsuit related to significant losses incurred by investors due to alleged fraudulent activities [1][9]. Group 1: Allegations of Fraud - The lawsuit claims that Stride engaged in two fraudulent schemes: inflating enrollment figures through "Ghost Students" and a significant technology platform failure, which collectively caused a 54% stock crash in a single day, resulting in billions in market capitalization loss [2][4]. - Stride and its executives are accused of misleading investors regarding core business metrics and operational stability, particularly in light of a platform upgrade failure that CEO James Rhyu admitted led to a "poor customer experience" [3][4]. Group 2: Specific Allegations - **Enrollment Fraud**: Stride allegedly retained "Ghost Students" to artificially inflate enrollment metrics, which contributed to an 11% stock drop upon partial disclosure of these practices [6]. - **Technology Catastrophe**: The company reportedly failed to disclose severe issues with a critical platform upgrade that blocked access for approximately 10,000 to 15,000 students, leading to a forecasted sales growth reduction to 5% from a historical 19%, triggering the 54% stock crash [7][8]. Group 3: Legal Proceedings and Investor Impact - The complaint seeks to recover losses for investors who purchased LRN securities during the Class Period from October 22, 2024, to October 28, 2025, holding Stride and its executives accountable for alleged misrepresentations [9]. - Hagens Berman is actively advising affected investors and emphasizes the importance of contacting them to discuss potential recovery options [10][11].

NEW YORK, Dec. 29, 2025 (GLOBE NEWSWIRE) -- Levi & Korsinsky, LLP notifies investors in Stride, Inc. ("Stride" or the "Company") (NYSE: LRN) of a class action securities lawsuit. CLASS DEFINITION: The lawsuit seeks to recover losses on behalf of Stride investors who were adversely affected by alleged securities fraud between October 22, 2024 and October 28, 2025. Follow the link below to get more information and be contacted by a member of our team: https://zlk.com/pslra-1/stride-inc-lawsuit-submission-form ...

Core Viewpoint - A class action lawsuit has been filed against Stride, Inc. and its senior executives for securities fraud, following significant stock drops attributed to potential violations of federal securities laws [1][3]. Company Overview - Stride, Inc. is an education technology company that provides an online platform to students across the U.S. [4]. Allegations and Impact - The lawsuit alleges 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 [4]. - Stride's stock price dropped significantly due to these allegations, falling by $18.60 (over 11%) on September 15, 2025, and by $83.48 (over 54%) on October 29, 2025, following admissions of poor customer experience [5][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, under the case caption MacMahon v. Stride, Inc., et al. [3]. Financial Implications - Stride estimated that the issues led to approximately 10,000-15,000 fewer enrollments, resulting in a muted outlook compared to previous years [6].

Core Viewpoint - A class action lawsuit has been filed against Stride, Inc. and its senior executives for securities fraud, following significant stock drops attributed to potential violations of federal securities laws [1][3]. Company Overview - Stride, Inc. is an education technology company that provides an online platform to students across the U.S. [4]. Allegations and Stock Impact - The lawsuit alleges 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 [4]. - On September 14, 2025, a report of fraud and deceptive practices caused Stride's stock to drop by $18.60 per share, over 11%, from $158.36 to $139.76 [5]. - Following an admission of poor customer experience on October 28, 2025, Stride's stock plummeted by $83.48 per share, 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, under the case caption MacMahon v. Stride, Inc., et al. [3].

Core Viewpoint - A class action lawsuit has been filed against Stride, Inc. and its senior executives for securities fraud, following significant stock drops attributed to potential violations of federal securities laws [1][3]. Company Overview - Stride, Inc. is an education technology company that provides an online platform to students across the U.S. [4]. Allegations and Stock Impact - The lawsuit alleges 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 [4]. - On September 14, 2025, a report of fraud and deceptive practices caused Stride's stock to drop by $18.60 per share, over 11%, from $158.36 to $139.76 [5]. - On October 28, 2025, Stride admitted to issues with customer experience, estimating a loss of 10,000-15,000 enrollments, which led to a further stock drop of $83.48 per share, over 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 filed under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 [3]. Legal Representation - Bleichmar Fonti & Auld LLP is representing the plaintiffs in this class action and has a history of successful recoveries in securities litigation [8].

Core Viewpoint - A class action lawsuit has been filed against Stride, Inc. and its senior executives for securities fraud, following significant stock drops attributed to potential violations of federal securities laws [1][3]. Company Overview - Stride, Inc. is an education technology company that provides an online platform to students across the U.S. [4]. Allegations and Stock Impact - 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 [4]. - On September 14, 2025, a report of fraud allegations caused Stride's stock to drop by $18.60 per share, over 11%, from $158.36 to $139.76 [5]. - Following an admission of poor customer experience on October 28, 2025, Stride's stock plummeted by $83.48 per share, 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 Information - Investors are encouraged to seek additional information regarding their legal options and can submit their information to the law firm representing the class action [2][7].

Core Viewpoint - A class action securities lawsuit has been filed against Stride, Inc. for alleged securities fraud affecting investors between October 22, 2024, and October 28, 2025 [1] Group 1: Allegations Against Stride - The lawsuit claims that Stride inflated enrollment numbers by retaining "ghost students" [2] - It is alleged that Stride cut staffing costs by assigning teachers caseloads beyond statutory limits [2] - The company is accused of ignoring compliance requirements, including background checks and licensure laws for employees, as well as federally mandated special education services [2] - Whistleblowers who documented financial directives from Stride's leadership were reportedly suppressed to preserve profit margins [2] - The company allegedly lost existing and potential enrollments due to these practices [2] Group 2: Legal Process and Participation - Investors who suffered losses during the relevant time frame have until January 12, 2026, to request to be appointed as lead plaintiff [3] - Class members may be entitled to compensation without any out-of-pocket costs or fees [3] Group 3: Firm Background - Levi & Korsinsky has a history of securing hundreds of millions of dollars for shareholders and has extensive expertise in complex securities litigation [4] - The firm has been recognized in ISS Securities Class Action Services' Top 50 Report for seven consecutive years as one of the top securities litigation firms in the U.S. [4]