Enrollment Drop, Compliance Allegations Fuel Stride (LRN) Shareholder Lawsuit-- Hagens Berman

Core Viewpoint - Stride Inc. is facing a securities class action lawsuit from shareholders due to allegations of misleading investors with inflated metrics and operational flaws, resulting in a significant decline in stock price [1][4]. Company Overview - Stride Inc. is one of the largest providers of online educational services in the United States [1]. - The company has been accused of inflating student enrollment figures by including "ghost students" and engaging in deceptive practices that prioritize profits over student welfare [4][7]. Legal Proceedings - Prominent shareholder rights law firm Hagens Berman is investigating the claims against Stride and its executives, urging affected investors to come forward [2][7]. - The class action lawsuit focuses on Stride's assurances regarding its business model and enrollment figures, which are alleged to be false and misleading [3][4]. Operational Challenges - A report surfaced on September 14, 2025, revealing that Gallup-McKinley sued Stride for fraud and deceptive practices, which contributed to the decline in investor confidence [4]. - Stride acknowledged that "poor customer experience" led to higher withdrawal rates and an estimated loss of 10,000 to 15,000 enrollments [5]. Financial Outlook - Stride's guidance for 2026 indicates a sales growth forecast of only 5%, a significant slowdown from the previous five years' annualized growth rate of 19% [6].