Stride(US:LRN) Globenewswire·2025-12-31 18:49Core Viewpoint - The article discusses a pending securities class action lawsuit against Stride, Inc. (NYSE: LRN) related to alleged fraudulent practices that led to significant investor losses, with a lead plaintiff deadline set for January 12, 2026 [1][9]. Allegations of Fraud - The lawsuit claims that Stride engaged in two fraudulent schemes: inflating enrollment figures through "Ghost Students" and failing to disclose a critical technology platform failure [2][5]. - The alleged fraudulent activities resulted in a 54% stock crash in a single day, leading to billions in market capitalization losses [2][8]. Specific Allegations - Enrollment Fraud: Stride is accused of using "Ghost Students" to artificially inflate enrollment metrics, which misled investors about the company's financial health. This initial disclosure caused an 11% drop in stock price [6]. - Technology Catastrophe: The company allegedly concealed severe issues with a platform upgrade that blocked access for 10,000 to 15,000 students, leading to a forecasted sales growth decline from 19% to only 5%, which contributed to the 54% stock crash [7][8]. Legal Proceedings - 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 misrepresentations [9]. - Hagens Berman, the law firm handling the case, emphasizes the systematic nature of the alleged fraud and is actively gathering evidence to support the claims [4][10].