The Law Offices of Frank R. Cruz announces that a class action lawsuit has been filed on behalf of shareholders who purchased Stride, Inc. (“Stride” or the “Company”) (NYSE: LRN) securities between October 22, 2024 and October 28, 2025, inclusive (the “Class Period”). Stride investors have until January 12, 2026 to file a lead plaintiff motion.

IF YOU SUFFERED A LOSS ON YOUR STRIDE, INC. (LRN) INVESTMENTS, CLICK HERE TO SUBMIT A CLAIM TO POTENTIALLY RECOVER YOUR LOSSES IN THE ONGOING SECURITIES FRAUD LAWSUIT.

You can also contact the Law Offices of Frank R. Cruz to discuss your legal rights by email at info@frankcruzlaw.com, by telephone at (310) 914-5007, or visit our website at www.frankcruzlaw.com.

What Happened?

On September 14, 2025, Simply Wall St. published a report stating that the Gallup-McKinley County Schools Board of Education had filed a complaint against Stride, alleging fraud, deceptive trade practices, systemic violations of law, and intentional and tortious misconduct, including inflating enrollment numbers by retaining “ghost students” on rolls to secure state funding per student and ignoring compliance requirements, including background checks and licensure laws for its employees.

On this news, Stride’s stock price fell $18.60, or 11.7%, to close at $139.76 per share on September 15, 2025, thereby injuring investors.

Then, on October 28, 2025, Stride released its first quarter fiscal 2026 financial results, revealing the Company had purposely “limit[ed] enrollment growth while we improve our execution.” The Company also revealed it had experienced “system implantation issues” resulting in “higher withdrawal rates and lower conversion rate.” The Company stated that “these factors resulted in approximately 10,000 to 15,000 fewer enrollments” and “these challenges will likely restrict [its] in-year enrollment growth.”

On this news, Stride’s stock price fell $83.48, or 54.4%, to close at $70.05 per share on October 29, 2025, thereby injuring investors further.

What Is The Lawsuit About?

The complaint filed in this class action alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors that: (1) Stride was inflating enrollment numbers by retaining “ghost students”; (2) Stride was cutting staffing costs by assigning teachers’ caseloads far beyond the required statutory limits; (3) Stride was ignoring compliance requirements, including background checks and licensure laws for its employees, and ignoring federally mandated special education services to students; (4) Stride was suppressing whistleblowers who documented financial directives from Stride’s leadership to delay hiring and deny services to preserve profit margins; (5) Stride was losing existing and potential student enrollments; and (6) as a result, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis at all relevant times.

Contact Us To Participate or Learn More:

If you purchased Stride securities, wish to learn more about this action, or have any questions concerning this announcement or your rights or interests with respect to these matters, please click HERE or contact us at:

Law Offices of Frank R. Cruz

2121 Avenue of the Stars, Suite 800

Telephone: 310-914-5007

Email: info@frankcruzlaw.com

Visit our website at: www.frankcruzlaw.com

This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.

View source version on businesswire.com: https://www.businesswire.com/news/home/20251114700735/en/

Law Offices of Frank R. Cruz Encourages Stride, Inc. (LRN) Shareholders to Inquire About Securities Fraud Class Action