Stride(US:LRN) Newsfile·2025-11-12 01:04Core Insights - Stride, Inc. is facing legal scrutiny following allegations of fraud and deceptive practices related to inflated enrollment numbers and compliance violations [5][6] - The company's stock has experienced significant declines, with a drop of 11.7% on September 15, 2025, and a further decline of up to 51% during intraday trading on October 29, 2025, following the release of disappointing financial results [6][7] Legal Issues - The Gallup-McKinley County Schools Board of Education has filed a complaint against Stride, alleging systemic violations of law and intentional misconduct [5] - The allegations include retaining "ghost students" to secure state funding and ignoring compliance requirements for employees [5] Financial Performance - In its first quarter fiscal 2026 results, Stride reported a deliberate limitation on enrollment growth due to operational issues, resulting in 10,000 to 15,000 fewer enrollments [7] - The company acknowledged "system implantation issues" that led to higher withdrawal rates and lower conversion rates, which are expected to restrict in-year enrollment growth [7]