Stride(US:LRN) Prnewswire·2026-01-12 20:31Core 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, urging affected investors to take action before the lead plaintiff deadline of 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 boost enrollment metrics, which misled investors about the company's financial health [6]. - The technology failure reportedly blocked access for 10,000 to 15,000 enrolled students, leading to a forecasted sales growth drop from 19% to only 5% [7][8]. Group 2: Financial Impact - The stock price of Stride plummeted 54% in a single day following the disclosures, resulting in a substantial loss of billions in market capitalization [2][8]. - An initial disclosure regarding the enrollment fraud caused an 11% drop in stock price, indicating the market's reaction to the alleged misrepresentations [6]. Group 3: Legal Proceedings and Next Steps - 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 the alleged misrepresentations [9]. - Hagens Berman, the law firm handling the case, is actively advising investors who suffered significant losses and is focused on gathering evidence related to the alleged operational failures [10][11].