Stride(US:LRN) Globenewswire·2025-12-29 22:01Core Viewpoint - Hagens Berman is reminding investors in Stride, Inc. (NYSE: LRN) about the deadline of January 12, 2026, to apply for lead plaintiff status in a securities class action lawsuit related to significant losses incurred by investors due to alleged fraudulent activities [1][9]. Group 1: Allegations of Fraud - The lawsuit claims that Stride engaged in two fraudulent schemes: inflating enrollment figures through "Ghost Students" and a significant technology platform failure, which collectively caused a 54% stock crash in a single day, resulting in billions in market capitalization loss [2][4]. - Stride and its executives are accused of misleading investors regarding core business metrics and operational stability, particularly in light of a platform upgrade failure that CEO James Rhyu admitted led to a "poor customer experience" [3][4]. Group 2: Specific Allegations - Enrollment Fraud: Stride allegedly retained "Ghost Students" to artificially inflate enrollment metrics, which contributed to an 11% stock drop upon partial disclosure of these practices [6]. - Technology Catastrophe: The company reportedly failed to disclose severe issues with a critical platform upgrade that blocked access for approximately 10,000 to 15,000 students, leading to a forecasted sales growth reduction to 5% from a historical 19%, triggering the 54% stock crash [7][8]. Group 3: Legal Proceedings and Investor Impact - The complaint seeks to recover losses for investors who purchased LRN securities during the Class Period from October 22, 2024, to October 28, 2025, holding Stride and its executives accountable for alleged misrepresentations [9]. - Hagens Berman is actively advising affected investors and emphasizes the importance of contacting them to discuss potential recovery options [10][11].