Stride(US:LRN) Globenewswire·2025-11-20 19:17Core Viewpoint - Faruqi & Faruqi, LLP is investigating potential claims against Stride, Inc. for alleged violations of federal securities laws, encouraging affected investors to contact them regarding their legal options [4][6]. Group 1: Allegations Against Stride, Inc. - The complaint alleges that Stride and its executives made false and misleading statements about the company's products and services, inflating enrollment numbers and cutting staff costs beyond statutory limits [6]. - A report from Gallup-McKinley County Schools Board of Education accused Stride of fraud and deceptive practices, including retaining "ghost students" to secure state funding [7]. - Following these allegations, Stride's stock price dropped significantly, falling $18.60 (11.7%) to close at $139.76 per share on September 15, 2025 [8]. Group 2: Financial Performance and Impact - On October 28, 2025, Stride reported first-quarter fiscal 2026 results, indicating a deliberate limitation on enrollment growth and issues with system implementation, leading to 10,000 to 15,000 fewer enrollments [9]. - The announcement of these challenges caused Stride's stock price to plummet by as much as 51% during intraday trading on October 29, 2025 [9]. Group 3: Legal Proceedings - Investors have until January 12, 2026, to seek the role of lead plaintiff in the federal securities class action against Stride [4]. - The lead plaintiff is defined as the investor with the largest financial interest in the relief sought, who will oversee the litigation on behalf of the class [10].