Online education platform Coursera will merge with Udemy in a deal that will value the combined company at $2.5 billion, the companies said on Wednesday. ...

Core Viewpoint - Stride, Inc. is facing a class action lawsuit due to allegations of misleading investors about its business practices, including inflating enrollment numbers and ignoring compliance requirements [1][3]. Company Overview - Stride, Inc. (NYSE: LRN) is a technology company that provides an education platform for online learning across the U.S. [1]. Class Action Details - The class period for the lawsuit is from October 22, 2024, to October 28, 2025 [1]. - The lawsuit was filed on behalf of all investors who purchased or acquired Stride shares during the class period [1]. Allegations Against Stride - Stride allegedly made false statements about being a leading technology-based education company and claimed to have deep expertise in educational and regulatory matters [3]. - Specific allegations include: 1. Inflating enrollment numbers by retaining "ghost students" [3]. 2. Cutting staffing costs by exceeding statutory limits on teachers' caseloads [3]. 3. Ignoring compliance requirements, including background checks and special education services [3]. 4. Suppressing whistleblowers who reported financial directives to delay hiring and deny services [3]. 5. Losing existing and potential enrollments [3]. Stock Price Impact - Following a report on September 14, 2025, regarding allegations of fraud and deceptive practices, Stride's stock price fell by $18.60, or 11.7%, closing at $139.76 on September 15, 2025 [4]. - On October 28, 2025, Stride announced that "poor customer experience" led to an estimated 10,000-15,000 fewer enrollments, resulting in a stock price drop of $83.48, or over 54%, closing at $70.05 on October 29, 2025 [5]. Next Steps for Shareholders - Shareholders interested in participating as lead plaintiffs must submit their papers by January 12, 2026 [6]. - Shareholders can remain absent class members if they choose not to participate [6].

SAN FRANCISCO, Nov. 10, 2025 (GLOBE NEWSWIRE) -- Prominent shareholder rights law firm Hagens Berman is investigating Stride, Inc. (NYSE: LRN), the online education platform, for potential violations of the U.S. securities laws following a series of negative market events and serious fraud allegations that have seen the company's stock price plummet. The firm urges investors in Stride who suffered significant losses to submit your losses now. The firm also encourages persons with knowledge who may be able t ...

We recently published 10 Stocks Plunging Fast; 5 Now at All-Time Lows. Stride, Inc. (NYSE:LRN) is one of the worst-performing stocks on Wednesday. Stride slid to an all-time low on Wednesday, as investor sentiment was dampened by an unusually slow growth outlook for the fiscal year 2026, alongside a faulty software glitch that caused an unexpected drop in enrollment during the summer. At intra-day trading, Stride, Inc. (NYSE:LRN) dropped to its lowest 52-week price of $68.83 before trimming losses to end ...

Core Viewpoint - Hagens Berman is investigating Stride, Inc. for potential violations of U.S. securities laws due to significant operational issues and fraud allegations that have led to a sharp decline in the company's stock price [1][4]. Group 1: Operational Issues - Stride reported Q1 earnings overshadowed by a major operational issue and cautious guidance, which triggered a sell-off in the stock [2]. - The company experienced significant disruptions while implementing an upgraded platform, resulting in an estimated loss of 10,000 to 15,000 enrollments, impacting its total enrollment of 247,700 [5]. - CEO James Rhyu acknowledged the implementation issues, stating that the poor customer experience led to higher withdrawal and lower conversion rates than expected [5]. Group 2: Financial Guidance - Stride's guidance for 2026 forecasts only 5% sales growth, a significant slowdown from the annualized sales growth of 19% over the past five years, raising concerns among investors [5]. Group 3: Fraud Allegations - Prior allegations against Stride include claims of fraud, deceptive practices, and prioritizing profits over student welfare, leading to a stock price drop of $18.60, or 11% [3]. - Allegations include artificially inflating student enrollment figures with "ghost students," increasing student-to-teacher ratios to boost profit margins, and employing insufficiently licensed teachers [6]. - The company is also accused of using unlawful practices to lower overhead costs to inflate stock values [6].

Core Insights - Stride, Inc.'s (LRN) career learning portfolio is well-positioned for growth due to increasing demand for non-college degrees and online education options [1][2] - The company's focus on career learning and adult certification programs is yielding positive results, with significant enrollment and revenue growth [2][8] Enrollment and Revenue Growth - Stride's Career Learning segment experienced a 33.7% year-over-year enrollment growth in Q3 of fiscal 2025, with revenues increasing by 26.4% to $242.6 million [2][8] - For the first nine months of fiscal 2025, enrollment in the Career Learning segment grew by 32% year over year [2] Market Demand and Competitive Advantage - Stride offers career-focused programs in high-demand industries such as information technology, healthcare, and general business, providing a competitive edge in the education sector [3] - The shift in demand towards career-focused and tech-based alternatives is driving the company's strategic expansion [2] Funding Environment and Strategic Investments - Early indicators suggest a long-term positive funding environment due to ongoing state budget processes [4] - Stride's investments in diversifying offerings and personalizing the learning model are expected to support long-term growth [4] Stock Performance and Valuation - Stride's shares have increased by 36.2% year-to-date, outperforming peers in the education sector [5][8] - The stock is trading at a forward 12-month price-to-earnings (P/E) ratio of 19.95X, indicating strong market potential despite being at a premium compared to industry peers [10] Earnings Estimates - Earnings estimates for fiscal 2025 and 2026 remain unchanged at $7.09 and $7.76 per share, respectively, implying year-over-year growth of 51.2% and 9.4% [12]