Core Viewpoint - A class action lawsuit has been filed against Stride, Inc. for securities fraud, alleging significant stock drops due to potential violations of federal securities laws [1][2]. Company Overview - Stride, Inc. is an education technology company that provides an online platform for students across the U.S. [3]. Allegations - The lawsuit claims that Stride inflated enrollment numbers by retaining "ghost students," ignored compliance requirements, and had a poor customer experience leading to higher withdrawal rates and lower conversion rates [3][4]. Stock Performance - On September 14, 2025, a report of fraud allegations caused Stride's stock to drop by $18.60, or over 11%, from $158.36 to $139.76 per share [4]. - Following Stride's admission of poor customer experience on October 28, 2025, the stock plummeted by $83.48, or more than 54%, from $153.53 to $70.05 per share [5]. Legal Proceedings - Investors have until January 12, 2026, to request to lead the case in the U.S. District Court for the Eastern District of Virginia [2]. - The lawsuit is captioned MacMahon v. Stride, Inc., et al., No. 1:25-cv-02019 [2]. Impact on Business - Stride estimated a loss of approximately 10,000-15,000 enrollments due to the issues raised, leading to a muted outlook compared to previous years [5].
LRN INVESTMENT: Stride, Inc. Investors with Losses may have Rights in Securities Class Action – Contact BFA Law by January 12 Deadline