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Stride (LRN) Investor Lawsuit Claims Complany Misled Investors About "Ghost Students" and Poor Customer Experience - Hagens Berman
Prnewswire· 2025-12-01 19:15
Core Viewpoint - The lawsuit against Stride, Inc. alleges that the company misled investors regarding its operational health and compliance, leading to a significant stock crash of over 54% following damaging disclosures [1][4]. Summary by Relevant Sections Allegations - Stride is accused of inflating enrollment figures by retaining "ghost students" and failing to disclose operational and compliance failures, which artificially inflated its stock price [2][7]. - The company allegedly ignored compliance by increasing student-to-teacher ratios beyond required limits and neglecting mandated special education services [7]. Key Events - On September 14, 2025, a lawsuit by Gallup-McKinley school district surfaced, alleging fraud and deceptive practices, causing Stride's stock to plunge by 11% [7]. - On October 28, 2025, Stride announced Q1 fiscal 2026 results, revealing severe operational issues due to a failed platform upgrade, leading to a stock crash of over 54% in one day [7]. Investor Information - Investors who purchased Stride, Inc. securities during the class period from October 22, 2024, to October 28, 2025, and suffered losses may be eligible to serve as Lead Plaintiff, with a deadline to file by January 12, 2026 [5][7].