Law Firms Press Stride Investors to Lead Securities Case Alleging ‘Ghost Students,’ Tech Failure

Overview

• The federal case, MacMahon v. Stride, Inc., No. 25-cv-02019, is pending in the U.S. District Court for the Eastern District of Virginia and targets investors who bought shares from October 22, 2024 through October 28, 2025.
• Plaintiffs allege Stride inflated enrollment using so-called “ghost students” and ignored compliance requirements such as background checks and licensure, with some notices also citing overloaded teacher caseloads and suppressed whistleblower reports.
• Stride disclosed on October 28 that “poor customer experience” and system issues led to higher withdrawals, lower conversions, and an estimated 10,000–15,000 fewer enrollments, tempering its outlook.
• The market reaction included an approximately 11% decline after a September school-district complaint and a 54% one-day drop on October 29 following the company’s disclosure.
• Multiple firms, including Hagens Berman, Rosen, Portnoy, Bernstein Liebhard, DJS, Kahn Swick & Foti, and Bleichmar Fonti & Auld, are soliciting class members and potential whistleblowers, and no class has been certified.