Stride(US:LRN) TMX Newsfile·2025-12-25 13:24Core Viewpoint - Faruqi & Faruqi, LLP is investigating potential claims against Stride, Inc. for alleged violations of federal securities laws, encouraging affected investors to contact them for legal options [2][4]. Group 1: Allegations Against Stride, Inc. - The complaint alleges that Stride and its executives made false and misleading statements regarding the company's products and services, inflating enrollment numbers and cutting staff costs beyond statutory limits [4]. - Stride is accused of retaining "ghost students" to secure state funding and ignoring compliance requirements, leading to a complaint filed by the Gallup-McKinley County Schools Board of Education [5]. - Following these allegations, Stride's stock price fell by $18.60, or 11.7%, on September 15, 2025, indicating significant investor injury [6]. Group 2: Financial Performance and Impact - On October 28, 2025, Stride reported a purposeful limitation on enrollment growth due to "system implementation issues," resulting in 10,000 to 15,000 fewer enrollments [7]. - The company's challenges led to a further decline in stock price, with a drop of up to 51% during intraday trading on October 29, 2025, exacerbating investor losses [7]. Group 3: Legal Proceedings and Investor Participation - The deadline for investors to seek the role of lead plaintiff in the federal securities class action against Stride is January 12, 2026 [2]. - Any member of the putative class can move the court to serve as lead plaintiff or remain an absent class member, with no impact on their ability to share in any recovery [8].