Stride(US:LRN) Prnewswire·2025-11-18 15:49Core 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 misrepresenting its business model's strength [4][7]. Legal Proceedings - Prominent shareholder rights law firm Hagens Berman is investigating claims against Stride and its executives, urging affected investors to report their losses [2][7]. - The class period for the lawsuit is from October 22, 2024, to October 28, 2025, with a lead plaintiff deadline set for January 12, 2026 [3]. Allegations and Operational Issues - The lawsuit claims that Stride's assurances about strong business performance were false, particularly regarding its ability to recover from enrollment losses after Gallup-McKinley canceled its contract [3][4]. - Allegations include: - Inflated enrollment numbers by retaining "ghost" students [7]. - Increased student-to-teacher ratios and insufficiently licensed teachers [4][7]. - Ignoring compliance requirements and suppressing whistleblowers [7]. Financial Impact - Stride reported that "poor customer experience" led to an estimated loss of 10,000 to 15,000 enrollments [5]. - The company's guidance for 2026 indicates a sales growth forecast of only 5%, a significant decrease from the previous five years' annualized growth of 19% [6].