Stride(US:LRN) Prnewswire·2026-01-12 11:02Core 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 focus on the deadline for investors to join the lawsuit as lead plaintiffs [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 metrics, which reportedly led to an 11% stock drop upon initial disclosure [6]. - The concealed technology failure blocked access for approximately 10,000 to 15,000 students, resulting in a forecasted sales growth decline from 19% to only 5%, contributing to 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 by 54% on the day the severity of the platform failure was revealed, indicating a drastic correction in the market's perception of Stride's financial health [4][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][10].