Kindercare Learning Companies, Inc.(US:KLC) Globenewswireยท2025-09-25 17:20Core 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 since its IPO in October 2024 [1][3][4]. Group 1: Company Background - KinderCare conducted its IPO in October 2024, selling over 27 million shares at $24 per share [2]. - The company is publicly traded on the NYSE under the ticker symbol KLC [1]. Group 2: Allegations and Impact - 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 growing allegations against KinderCare, prompting lawmakers to demand accountability, resulting in a further stock price decline of $0.63, or 5.5%, to close at $10.78 per share [5][4]. 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]. - The lawsuit claims that KinderCare did not meet minimum standards in the childcare industry and was exposed to undisclosed risks, including lawsuits and reputational damage [6]. - Investors who purchased KinderCare stock during the IPO can file a lead plaintiff motion by October 14, 2025 [7].