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Deadline Alert: KinderCare Learning Companies, Inc. (KLC) Investors Who Lost Money Urged To Contact Glancy Prongay & Murray LLP About Securities Fraud Lawsuit
Kindercare Learning Companies, Inc.Kindercare Learning Companies, Inc.(US:KLC) GlobeNewswire News Roomยท2025-08-22 16:00

Core Viewpoint - KinderCare Learning Companies, Inc. is facing a class action lawsuit due to allegations of child abuse and neglect at its facilities, which has led to significant stock price declines and investor losses following negative reports [3][4][5][6]. Group 1: Company Background - KinderCare conducted its initial public offering (IPO) in October 2024, selling over 27 million shares at $24 per share [2]. - The company is publicly traded on the New York Stock Exchange under the ticker symbol KLC [1]. Group 2: Allegations and Reports - A report published by Bear Cave on April 3, 2025, accused KinderCare of failing to provide a safe environment, citing incidents of child neglect and abuse, including arrests of employees for child sex abuse [3]. - Following the April report, KinderCare's stock price dropped by $1.59, or 12.4%, closing at $11.19 per share [4]. - A subsequent report on June 5, 2025, indicated that allegations against KinderCare were increasing, with lawmakers calling for accountability, resulting in a further stock price decline of $0.63, or 5.5%, to close at $10.78 per share [5][6]. Group 3: Lawsuit Details - The class action lawsuit alleges that KinderCare made materially false and misleading statements regarding its business operations and failed to disclose incidents of child abuse and neglect [6]. - Specific claims include that KinderCare did not provide the highest quality care, failed to meet minimum standards, and was exposed to undisclosed risks of lawsuits and reputational damage [6]. - Investors who purchased KinderCare stock during the IPO are encouraged to file a lead plaintiff motion by October 14, 2025 [7].