Stride(US:LRN) Prnewswire·2025-11-26 13:50Core Viewpoint - Stride, Inc. is facing a securities class action lawsuit from shareholders due to significant operational and compliance challenges that have led to a sharp decline in its stock price [1] Company Overview - Stride, Inc. is one of the largest providers of online educational services in the United States [1] Legal Proceedings - Hagens Berman, a prominent shareholder rights law firm, is investigating legal claims against Stride and its executives, urging affected investors to report their losses [2] - The class action lawsuit covers the period from October 22, 2024, to October 28, 2025, with a lead plaintiff deadline set for January 12, 2026 [3] Allegations - The lawsuit focuses on Stride's misleading assurances regarding its business model and enrollment figures, particularly after the cancellation of a contract with Gallup-McKinley [3] - Allegations include inflated student enrollment numbers through "ghost students," increased student-to-teacher ratios, and insufficiently licensed teachers, all aimed at inflating stock values [4][8] Impact on Enrollment - Stride reported that "poor customer experience" led to an estimated loss of 10,000 to 15,000 enrollments [5] Financial Forecast - The company has forecasted a sales growth of only 5% for 2026, a significant decline from the previous five years' annualized sales growth of 19%, raising concerns among investors [6] Investigation Focus - The investigation aims to determine the extent of company leadership's awareness of operational and compliance deficiencies prior to public disclosures and whether these misrepresentations constitute securities fraud [7]