Core Viewpoint - A class action lawsuit has been filed against Stride, Inc. and its senior executives for securities fraud, following significant stock drops attributed to potential violations of federal securities laws [1][3]. Company Overview - Stride, Inc. is an education technology company that provides an online platform to students across the U.S. [4]. Allegations and Stock Impact - The lawsuit claims that Stride inflated enrollment numbers by retaining "ghost students," ignored compliance requirements, and had a poor customer experience leading to higher withdrawal rates and lower conversion rates [4]. - On September 14, 2025, a report of fraud allegations caused Stride's stock to drop by $18.60, or over 11%, from $158.36 to $139.76 per share [5]. - Following an admission of poor customer experience on October 28, 2025, Stride's stock plummeted by $83.48, or more than 54%, from $153.53 to $70.05 per share, with an estimated impact of 10,000-15,000 fewer enrollments [6].

Core Viewpoint - Faruqi & Faruqi, LLP is investigating potential claims against Stride, Inc. for alleged violations of federal securities laws, encouraging affected investors to contact them for legal options [2][4]. Group 1: Allegations Against Stride, Inc. - The complaint alleges that Stride and its executives made false and misleading statements regarding the company's products and services, inflating enrollment numbers and cutting staff costs beyond statutory limits [4]. - Stride is accused of retaining "ghost students" to secure state funding and ignoring compliance requirements, leading to a complaint filed by the Gallup-McKinley County Schools Board of Education [5]. - Following these allegations, Stride's stock price fell by $18.60, or 11.7%, on September 15, 2025, indicating significant investor injury [6]. Group 2: Financial Performance and Impact - On October 28, 2025, Stride reported a purposeful limitation on enrollment growth due to "system implementation issues," resulting in 10,000 to 15,000 fewer enrollments [7]. - The company's challenges led to a further decline in stock price, with a drop of up to 51% during intraday trading on October 29, 2025, exacerbating investor losses [7]. Group 3: Legal Proceedings and Investor Participation - The deadline for investors to seek the role of lead plaintiff in the federal securities class action against Stride is January 12, 2026 [2]. - Any member of the putative class can move the court to serve as lead plaintiff or remain an absent class member, with no impact on their ability to share in any recovery [8].

Core Insights - Stride, Inc. (LRN) faced challenges in fiscal 2026 due to technical issues with its new technology platforms but still achieved double-digit revenue growth and strong profitability in Q1 [2][8] Financial Performance - Stride delivered an adjusted EPS of $1.52 in Q1 FY26 despite disruptions, indicating resilience in earnings [8] - The company's earnings estimates for fiscal 2026 and fiscal 2027 have been revised upward, reflecting a year-over-year improvement of 3.1% and 8.6%, respectively [6][7] Growth Drivers - The Career Learning segment was a key growth driver, with enrollment increasing by 20% year over year, benefiting from higher revenue per student and favorable margins [3][8] - Management views Career Learning as a long-term growth engine and a stabilizer during operational transitions [3] Future Outlook - Stride anticipates ongoing technology remediation efforts throughout fiscal 2026, with significant improvements expected in the coming months [4] - Although management has adjusted near-term enrollment growth expectations downward, they remain confident in returning to historical growth levels once systems stabilize [4] Market Position - Stride's stock is currently trading at a forward P/E ratio of 7.52, which is lower than competitors like Strategic Education (12.39) and American Public Education (17.21) [13][14] - In the past month, Stride's shares gained 3.9%, underperforming the Zacks Schools industry but outperforming the broader Zacks Consumer Discretionary sector and the S&P 500 Index [10]

Core Viewpoint - A class action lawsuit has been filed against Stride, Inc. and its senior executives for securities fraud, following significant stock drops attributed to potential violations of federal securities laws [1][3]. Company Overview - Stride, Inc. is an education technology company that provides an online platform for students across the U.S. [4]. Allegations and Stock Impact - The lawsuit claims that Stride inflated enrollment numbers by retaining "ghost students," ignored compliance requirements, and had a poor customer experience leading to higher withdrawal rates and lower conversion rates [4]. - On September 14, 2025, a report of fraud allegations caused Stride's stock to drop by $18.60 per share, over 11%, from $158.36 to $139.76 [5]. - Following an admission of poor customer experience on October 28, 2025, Stride's stock plummeted by $83.48 per share, more than 54%, from $153.53 to $70.05 [6]. Legal Proceedings - Investors have until January 12, 2026, to request to lead the case in the U.S. District Court for the Eastern District of Virginia [3]. - The lawsuit is titled MacMahon v. Stride, Inc., et al., No. 1:25-cv-02019 [3]. Investor Information - Investors are encouraged to seek additional information regarding their legal options and can submit their information to the law firm representing the class action [2][7]. - The law firm operates on a contingency fee basis, meaning there are no upfront costs for shareholders [7]. Law Firm Background - Bleichmar Fonti & Auld LLP is a leading international law firm known for representing plaintiffs in securities class actions and has achieved notable recoveries in past cases [8].

Core Viewpoint - A class action lawsuit has been filed against Stride, Inc. for allegedly misleading investors regarding its operations and financial performance during the specified Class Period [1][3]. Group 1: Lawsuit Details - The lawsuit is on behalf of investors who purchased Stride securities from October 22, 2024, to October 28, 2025 [1][2]. - Investors have until January 12, 2026, to seek appointment as lead plaintiff representative of the class [2]. Group 2: Allegations Against Stride - The complaint alleges that Stride inflated enrollment numbers, reduced staffing below statutory limits, ignored compliance requirements, and concealed enrollment losses [3]. - The truth about Stride's situation was revealed on September 14, 2025, when a school district sued the company for fraud and deceptive trade practices [4]. - On October 28, 2025, Stride announced that "poor customer experience" led to higher withdrawal rates and fewer enrollments, causing a significant decline in share price [4].

Core Viewpoint - The Stride, Inc. class action lawsuit alleges significant violations of the Securities Exchange Act of 1934, involving misleading statements and non-disclosure of critical operational issues during the specified class period [1][3]. Group 1: Allegations Against Stride, Inc. - The lawsuit claims that Stride inflated enrollment numbers by retaining "ghost students" and cut staffing costs by overloading teachers beyond statutory limits [3]. - It is alleged that Stride ignored compliance requirements, including background checks and special education services, and suppressed whistleblowers who reported financial directives to delay hiring and deny services [3]. - A complaint filed by the Gallup-McKinley County Schools Board of Education accused Stride of fraud and deceptive practices, leading to a nearly 12% drop in stock price following the news [4]. - On October 28, 2025, Stride reported that "poor customer experience" resulted in an estimated 10,000-15,000 fewer enrollments, causing its stock price to fall over 54% [5]. Group 2: Legal Process and Representation - Investors who purchased Stride securities during the class period can seek appointment as lead plaintiff, representing the interests of the class [6]. - The lead plaintiff can choose a law firm to litigate the case, and participation as lead plaintiff does not affect the ability to share in any potential recovery [6]. Group 3: About Robbins Geller - Robbins Geller Rudman & Dowd LLP is a leading law firm in securities fraud and shareholder litigation, having recovered over $2.5 billion for investors in 2024 alone [7]. - The firm has been ranked 1 in securing monetary relief for investors and has a significant history of obtaining large recoveries in securities class action cases [7].

Core Viewpoint - The complaint against Stride alleges violations of federal securities laws, including false statements and failure to disclose critical information regarding its products and services, leading to inflated enrollment numbers and compliance issues [2][3]. Group 1: Allegations and Legal Actions - Stride is accused of inflating enrollment numbers by retaining "ghost students" to secure state funding and ignoring compliance requirements such as background checks for employees [3]. - The Gallup-McKinley County Schools Board of Education has filed a complaint against Stride, alleging fraud and deceptive trade practices [3]. - The company faced a significant stock price drop of $18.60, or 11.7%, closing at $139.76 per share following the news of the allegations [4]. Group 2: Financial Performance and Impact - In its first quarter fiscal 2026 results, Stride reported limiting enrollment growth to improve execution, citing "system implantation issues" that led to higher withdrawal rates and lower conversion rates [5]. - The company indicated that these challenges resulted in approximately 10,000 to 15,000 fewer enrollments, which would likely restrict in-year enrollment growth [5]. - Following the financial results announcement, Stride's stock price fell as much as 51% during intraday trading, further impacting investors [5].

Core Viewpoint - A class action securities lawsuit has been filed against Stride, Inc. for alleged securities fraud affecting investors between October 22, 2024, and October 28, 2025 [1] Group 1: Allegations Against Stride - The lawsuit claims that Stride inflated enrollment numbers by retaining "ghost students" [2] - It is alleged that Stride cut staffing costs by assigning teachers' caseloads beyond statutory limits [2] - The company is accused of ignoring compliance requirements, including background checks and licensure laws for employees, as well as federally mandated special education services [2] - Whistleblowers who documented financial directives from Stride's leadership were reportedly suppressed to delay hiring and deny services, preserving profit margins [2] - The lawsuit also states that Stride lost existing and potential enrollments due to these practices [2] Group 2: Legal Process and Participation - Investors who suffered losses during the relevant time frame have until January 12, 2026, to request to be appointed as lead plaintiff [3] - Class members may be entitled to compensation without any out-of-pocket costs or fees [3] Group 3: Firm Background - Levi & Korsinsky has a history of securing hundreds of millions of dollars for shareholders and has extensive expertise in complex securities litigation [4] - The firm has been recognized in ISS Securities Class Action Services' Top 50 Report for seven consecutive years as one of the top securities litigation firms in the U.S. [4]

Core Viewpoint - A class action lawsuit has been filed against Stride, Inc. and its senior executives for securities fraud, following significant stock drops attributed to potential violations of federal securities laws [1][2]. Group 1: Lawsuit Details - Investors have until January 12, 2026, to request to lead the case, which is pending in the U.S. District Court for the Eastern District of Virginia [2]. - The lawsuit asserts claims under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 on behalf of investors in Stride securities [2]. Group 2: Allegations Against Stride - Stride, an education technology company, allegedly inflated enrollment numbers by retaining "ghost students" and ignored compliance requirements, leading to poor customer experiences and higher withdrawal rates [3]. - The company claimed to be experiencing growth and strong demand, which is contradicted by the allegations of inflated enrollment figures and compliance failures [3]. Group 3: Stock Price Impact - On September 14, 2025, a report of the fraud allegations caused Stride's stock to drop by $18.60, or over 11%, from $158.36 to $139.76 per share [4]. - Following Stride's admission of poor customer experience on October 28, 2025, the stock plummeted by $83.48, or more than 54%, from $153.53 to $70.05 per share, with an estimated impact of 10,000-15,000 fewer enrollments [5].

NEW YORK, Dec. 22, 2025 (GLOBE NEWSWIRE) -- The Gross Law Firm issues the following notice to shareholders of Stride, Inc. (NYSE: LRN). Shareholders who purchased shares of LRN during the class period listed are encouraged to contact the firm regarding possible lead plaintiff appointment. Appointment as lead plaintiff is not required to partake in any recovery. CONTACT US HERE: https://securitiesclasslaw.com/securities/stride-inc-loss-submission-form-3/?id=180998&from=3 CLASS PERIOD: October 22, 2024 to Oct ...