1. Stride Inc. faces a securities class action lawsuit from shareholders. 2. Allegations include inflated metrics and operational compliance issues. 3. The company’s stock price has significantly declined due to these disclosures. 4. Future sales growth forecast significantly decreased to 5% for FY '26. 5. Hagens Berman is investigating potential misrepresentation by Stride executives.
The lawsuit suggests severe trust issues, similar to past fraud allegations against companies like Enron.
The severity of operational allegations and the class action lawsuit indicate a crucial risk for investors.
The immediate effects of this legal action will likely impact stock prices promptly.
EdTech Company Stride Inc. is accused of misleading investors with inflated metrics and obscuring operational flaws that led to a massive stock decline
SAN FRANCISCO , Nov. 14, 2025 /PRNewswire/ -- - Stride, Inc. (NYSE:LRN), one of the nation's largest providers of online educational services, is now facing a securities class action lawsuit from shareholders after a series of disclosures revealed significant operational and compliance challenges, leading to a precipitous drop in its stock price.
Prominent shareholder rights law firm Hagens Berman is actively investigating the alleged legal claims against Stride and certain of its executives. The firm urges investors who suffered significant losses to submit your losses now. The firm also encourages persons with knowledge who may be able to assist in the investigation to contact its attorneys.
Class Period: Oct. 22, 2024 – Oct. 28, 2025
Lead Plaintiff Deadline: Jan. 12, 2026
Visit: www.hbsslaw.com/investor-fraud/lrn
Contact the Firm Now: LRN@hbsslaw.com
844-916-0895
Stride, Inc. (LRN) Securities Class Action
The litigation is focused on the propriety of Stride's assurances that its business model is strong, its in-year enrollments is strong, and that it is "on track for another year of strong growth in FY '26." The case's focus includes Stride's assurances that it could fill the hole left by the enrollment loss when Gallup-McKinley canceled its contract with the company.
The complaint alleges that these and other assurances were false and misleading because, unknown to investors, Stride:
The complaint further alleges that investors began to learn the truth on September 14, 2025. That day, a report surfaced which revealed that Gallup-McKinley sued Stride alleging fraud, deceptive practices, and systematic legal violations that prioritized profits over student welfare. Gallup alleged Stride inflated student enrollments by including "ghost students" – those who never officially started or had been absent for at least ten consecutive days. Gallup also accused Stride of intentionally and illegally increasing student-to-teacher ratios, employing insufficiently licensed teachers, and unlawful business practices for the sole purpose of inflating its stock values.
Then, on October 28, 2025, Stride announced that "poor customer experience" resulted in "higher withdrawal rates," "lower conversion rates," and had driven students away. The company estimated that the impact was 10,000 to 15,000 fewer enrollments.
The most significant concern for investors was Stride's guidance for 2026, forecasting sales growth of only 5%. This is a stark slowdown from the company's annualized sales growth of 19% over the last five years and has prompted the market to take a sharply cautious stance.
"We're investigating the extent to which company leadership was aware of the alleged operational and compliance deficiencies before the public disclosures, and whether the alleged misrepresentations and omissions constitute securities fraud," said Reed Kathrein, the Hagens Berman partner leading the investigation.
If you invested in Stride and have substantial losses, or have knowledge that may assist the firm's investigation, submit your losses now »
If you'd like more information and answers to frequently asked questions about the Stride case and our investigation, read more »
Whistleblowers: Persons with non-public information regarding Stride should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Reed Kathrein at 844-916-0895 or email LRN@hbsslaw.com.
About Hagens Berman
Hagens Berman is a global plaintiffs' rights complex litigation firm focusing on corporate accountability. The firm is home to a robust practice and represents investors as well as whistleblowers, workers, consumers and others in cases achieving real results for those harmed by corporate negligence and other wrongdoings. Hagens Berman's team has secured more than $2.9 billion in this area of law. More about the firm and its successes can be found at hbsslaw.com. Follow the firm for updates and news at @ClassActionLaw.
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SOURCE Hagens Berman Sobol Shapiro LLP