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Gainey McKenna & Egleston Announces a Class Action Lawsuit Has Been Filed Against KinderCare Learning Companies, Inc. (KLC)

1. A class action lawsuit has been filed against KinderCare Learning Companies. 2. The lawsuit claims false statements were made during the 2024 IPO. 3. Allegations include incidents of child abuse and neglect at facilities. 4. KinderCare's stock price has plummeted below half of its IPO price. 5. Investors are urged to participate before the lead plaintiff motion deadline.

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FAQ

Why Very Bearish?

Legal actions and allegations of negligence can significantly harm company reputation and stock value. Historical cases show such lawsuits often result in severe price declines.

How important is it?

The severe allegations and active class action present a legitimate threat to KLC's valuation and investor confidence.

Why Short Term?

Immediate market reaction is expected to the lawsuit news, affecting stock price as investors seek to avoid risk. Previous similar lawsuits have caused quick market sell-offs.

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KLCEDUCKH
NEW YORK, Aug. 13, 2025 (GLOBE NEWSWIRE) -- Gainey McKenna & Egleston announces that a securities class action lawsuit has been filed in the United States District Court for the District of Oregon on behalf of all persons or entities who purchased the securities of KinderCare Learning Companies, Inc. (“KinderCare” or the “Company”) (NYSE: KLC) in its October 2024 initial public offering (the “IPO”). The Complaint alleges that Defendants made materially false and misleading statements because they failed to disclose the following adverse facts that existed at the time of the IPO: (i) that numerous incidents of child abuse, neglect, and harm had occurred at KinderCare facilities; (ii) that KinderCare did not provide the “highest quality care possible” at its facilities, and, indeed, in numerous instances had failed to provide even basic care, meet minimum standards in the child care industry, or comply with the laws and regulations governing the care of children; and (iii) that, as a result of (i)-(iii) above, KinderCare was exposed to a material, undisclosed risk of lawsuits, adverse regulatory action, negative publicity, reputational damage, and business loss. The Complaint further alleges that since the IPO, the price of KinderCare stock has fallen to lows near $9 per share – substantially less than half the $24 per share IPO price. Investors who purchased or otherwise acquired shares of KinderCare should contact the Firm prior to the October 14, 2025 lead plaintiff motion deadline. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation.  If you wish to discuss your rights or interests regarding this class action, please contact Thomas J. McKenna, Esq. or Gregory M. Egleston, Esq. of Gainey McKenna & Egleston at (212) 983-1300, or via e-mail at tjmckenna@gme-law.com or gegleston@gme-law.com. Please visit our website at http://www.gme-law.com for more information about the firm.

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