Stride(US:LRN) Globenewswire·2025-12-12 14:34Core Viewpoint - The article discusses a securities fraud class action lawsuit against Stride, Inc., alleging that the company misled investors about its operational health and compliance, leading to a significant stock crash of over 54% following damaging disclosures [1][4]. Company Allegations - Stride is accused of inflating enrollment figures by retaining "ghost students" and compounding this deception with a problematic platform upgrade that management was aware of [2][6]. - The lawsuit claims that Stride's management intentionally misled investors regarding the stability of enrollment figures and the severity of operational and compliance failures to artificially inflate stock prices [4][6]. Key Events and Impact - The lawsuit was triggered by two major disclosures: 1. On September 14, 2025, a report surfaced detailing a lawsuit by Gallup-McKinley school district, alleging fraud and deceptive practices, which caused Stride's stock to plunge by 11% [6]. 2. On October 28, 2025, Stride announced Q1 fiscal 2026 results, revealing severe operational issues due to a failed platform upgrade, leading to significant enrollment losses and a stock crash of over 54% in a single day [6]. Next Steps for Investors - Investors who purchased Stride, Inc. securities during the class period (October 22, 2024 – October 28, 2025) and suffered substantial losses may be eligible to serve as Lead Plaintiff, with a deadline to file motions by January 12, 2026 [5][6].