Stride(US:LRN) Globenewswire·2025-11-13 16:38Core Viewpoint - Stride, Inc. is facing a securities class action lawsuit from shareholders due to significant operational and compliance challenges that have led to a sharp decline in its stock price [1] Group 1: Legal Proceedings - Hagens Berman, a prominent shareholder rights law firm, is investigating legal claims against Stride and its executives, urging affected investors to report their losses [2] - The class action lawsuit covers the period from October 22, 2024, to October 28, 2025, with a lead plaintiff deadline set for January 12, 2026 [3] - The litigation focuses on Stride's assurances regarding its business model and enrollment figures, particularly after the loss of a contract with Gallup-McKinley [3] Group 2: Allegations and Findings - The complaint alleges that Stride misled investors about its operational health, including inflated enrollment figures by including "ghost students" and increasing student-to-teacher ratios unlawfully [4][9] - A report surfaced on September 14, 2025, revealing Gallup-McKinley's lawsuit against Stride for fraud and deceptive practices, which further damaged investor trust [4] - Stride's announcement on October 28, 2025, indicated that "poor customer experience" led to an estimated loss of 10,000 to 15,000 enrollments [5] Group 3: Financial Outlook - Investors expressed significant concern over Stride's guidance for 2026, forecasting only 5% sales growth, a stark decline from the previous five years' annualized growth of 19% [6]