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Law Firms Court Stride Investors to Lead Securities Class Action After Enrollment Shortfall Reveal

The Virginia suit alleges inflated enrollments alongside compliance lapses, with investors facing a January 12 deadline to seek lead-plaintiff status.

Overview

  • MacMahon v. Stride, Inc., No. 1:25-cv-02019, is pending in the U.S. District Court for the Eastern District of Virginia under Sections 10(b) and 20(a).
  • Plaintiffs allege Stride kept “ghost students,” overextended teacher caseloads, skirted background and licensure rules, and suppressed whistleblowers.
  • Stride disclosed on October 28 that poor customer experience led to higher withdrawals, lower conversions, and an estimated 10,000–15,000 fewer enrollments.
  • LRN shares fell about 11% after a September report tied to a New Mexico district complaint and more than 54% following the October 28 disclosure.
  • Bronstein Gewirtz & Grossman, Bleichmar Fonti & Auld, Robbins Geller, Levi & Korsinsky, Rosen Law Firm, and the Schall Law Firm are soliciting class members for the lead-plaintiff process covering purchases from October 22, 2024 to October 28, 2025.