Stride(US:LRN) Globenewswire·2025-11-20 20:04Core Viewpoint - Stride, Inc. is facing a class action lawsuit due to allegations of fraud and deceptive practices related to inflated enrollment numbers and compliance violations, which have significantly impacted its stock price and investor confidence [2][5]. Group 1: Allegations and Impact - The Gallup-McKinley County Schools Board of Education filed a complaint against Stride, alleging fraud and deceptive trade practices, including the retention of "ghost students" to inflate enrollment numbers for state funding [2]. - Following the allegations, Stride's stock price dropped by $18.60, or 11.7%, closing at $139.76 per share on September 15, 2025 [3]. - Stride's first quarter fiscal 2026 results revealed intentional limitations on enrollment growth and systemic issues, leading to a further stock price decline of $83.48, or 54.4%, closing at $70.05 per share on October 29, 2025 [4]. Group 2: Class Action Details - The class action lawsuit claims that Stride made materially false and misleading statements, failing to disclose critical issues such as inflated enrollment numbers, staffing cost cuts, and non-compliance with legal requirements [5]. - Investors who purchased Stride securities during the class period (October 22, 2024, to October 28, 2025) have until January 12, 2026, to file a lead plaintiff motion in the lawsuit [1][6].