Stride(US:LRN) Prnewswire·2026-01-03 14:00Core 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 deadline for investors to join the lawsuit set for January 12, 2026 [1][9]. Group 1: 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 enrollment fraud involved retaining "Ghost Students" to artificially inflate enrollment metrics, which is said to have initially caused an 11% drop in stock price upon partial disclosure [6]. - The technology failure reportedly blocked access for 10,000 to 15,000 enrolled students, leading to a forecasted sales growth reduction from 19% to only 5%, culminating in a 54% stock crash in a single day [7][8]. Group 2: Financial Impact - The cumulative impact of the fraudulent disclosures resulted in a loss of billions in market capitalization for Stride [2]. - The stock price fell 54% in one day following the revelation of the operational failures, indicating a severe market reaction to the disclosed information [2][8]. Group 3: 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 alleged misrepresentations [9]. - Hagens Berman, the law firm leading the case, emphasizes the systematic nature of the alleged fraudulent practices and is actively gathering evidence to support the claims [4][11].