Stride(US:LRN) Businesswire·2025-11-12 23:05Core Viewpoint - A class action lawsuit has been filed against Stride, Inc. for allegedly making misleading statements regarding its products and services, leading to inflated enrollment numbers and compliance issues [2][3]. Company Overview - Stride, Inc. is a company that provides educational products and services to public and private schools, school districts, and charter boards [2]. - The company is publicly traded on the NYSE under the ticker symbol LRN [1]. Allegations and Legal Proceedings - The lawsuit claims that Stride misrepresented its offerings, stating they were designed to help learners reach their full potential, while in reality, the company was inflating enrollment figures and cutting staff costs excessively [2]. - A complaint was filed by the Gallup-McKinley County Schools Board of Education against Stride, alleging fraud and deceptive practices, including retaining "ghost students" to secure state funding [3]. - Following the complaint, Stride's share price dropped by approximately 11.7%, from $158.36 to $139.76, after the news broke on September 14, 2025 [3]. Financial Impact - On October 28, 2025, Stride announced that poor customer experience led to a significant decline in enrollments, estimating a loss of 10,000 to 15,000 students, which resulted in a share price decline of about 54.4%, from $153.53 to $70.05 [4]. Investor Information - Investors who suffered losses during the class period from October 22, 2024, to October 28, 2025, have until January 12, 2026, to request lead plaintiff appointment in the class action lawsuit [2][5].