Stride(US:LRN) Globenewswire·2025-12-16 23:32Core Viewpoint - The ongoing securities class action lawsuit against Stride, Inc. is centered on allegations of fraudulent practices, including inflated enrollment figures and a significant technology platform failure, which led to a drastic decline in stock value and substantial investor losses [2][4][9]. Group 1: Allegations of Fraud - The lawsuit claims that Stride engaged in fraudulent practices by using "Ghost Students" to artificially inflate enrollment metrics, which misled investors about the company's financial health [6][5]. - The complaint details a severe technology platform failure that blocked access for approximately 10,000 to 15,000 students, which was not disclosed to investors, leading to a significant drop in sales growth forecasts from 19% to 5% [7][8]. Group 2: Financial Impact - Following the initial disclosure of the fraudulent enrollment practices, Stride's stock dropped by 11% [6]. - The revelation of the technology failure resulted in a catastrophic 54% stock crash in a single day, causing billions in market capitalization losses [2][8]. Group 3: Legal Proceedings - The lawsuit seeks to recover losses for investors who purchased Stride securities during the Class Period from October 22, 2024, to October 28, 2025, holding the company and its executives accountable for alleged misrepresentations [9]. - The deadline for investors to move the Court for appointment as lead plaintiff is January 12, 2026, emphasizing the urgency for affected investors to act [1][12].