Stride Investors Sought for Lead Roles in Securities Suits Over Alleged Enrollment Inflation and Tech Failures
Motions are due January 12 for the Eastern District of Virginia litigation tied to a 54% stock plunge following a 10,000–15,000 enrollment shortfall.
Overview
- Multiple securities class actions are pending in the Eastern District of Virginia alleging violations of §§10(b), 20(a), and SEC Rule 10b‑5 by Stride and certain executives.
- Complaints contend Stride inflated enrollment with so‑called “ghost students,” overloaded teacher caseloads, ignored compliance requirements, and suppressed whistleblowers.
- Stride disclosed on October 28, 2025 that a troubled platform upgrade produced poor customer experience and an estimated 10,000–15,000 lost enrollments, preceding a one‑day share drop of about 54%.
- A September 14, 2025 report about a Gallup‑McKinley school district complaint alleging fraud and “ghost students” coincided with an approximately 11% decline in the stock.
- Plaintiff firms including Hagens Berman, Rosen, Kirby McInerney, Schall, Portnoy, Levi & Korsinsky, Faruqi & Faruqi, Lowey Dannenberg, and Kahn Swick & Foti are soliciting class members ahead of the January 12, 2026 lead‑plaintiff deadline.