Stride(US:LRN) Globenewswire·2025-11-20 16:05Core Viewpoint - The Stride, Inc. class action lawsuit alleges significant violations of the Securities Exchange Act of 1934, including misleading statements and non-compliance with legal requirements, leading to substantial financial losses for investors [1][3]. Group 1: Allegations Against Stride, Inc. - The lawsuit claims that Stride inflated enrollment numbers by retaining "ghost students" and cut staffing costs by overloading teachers beyond statutory limits [3]. - Stride is accused of ignoring compliance requirements, including background checks and special education services, and suppressing whistleblowers who reported financial misconduct [3]. - A complaint from the Gallup-McKinley County Schools Board of Education alleged fraud and deceptive practices, which resulted in a nearly 12% drop in Stride's stock price [4]. Group 2: Impact on Stock Performance - Following the announcement of "poor customer experience" leading to higher withdrawal rates and lower conversion rates, Stride's stock fell more than 54% after estimating a loss of 10,000-15,000 enrollments [5]. - The company's outlook was described as "muted" compared to previous years due to these issues [5]. Group 3: Legal Process and Representation - Investors who purchased Stride securities during the class period can seek appointment as lead plaintiff, representing the interests of the class [6]. - The lead plaintiff can choose a law firm to litigate the case, and participation as lead plaintiff does not affect the ability to share in any potential recovery [6]. Group 4: About Robbins Geller - Robbins Geller Rudman & Dowd LLP is a leading law firm in securities fraud and shareholder litigation, having recovered over $2.5 billion for investors in 2024 alone [7]. - The firm has been recognized for securing the most monetary relief for investors and has a significant history of large recoveries in securities class action cases [7].