Stride Class-Action Push Intensifies Ahead of Jan. 12 Lead-Plaintiff Deadline
Investors allege overstated enrollment tied to compliance lapses following Stride’s disclosure of a sharp shortfall.
Overview
- MacMahon v. Stride, Inc. is pending in the U.S. District Court for the Eastern District of Virginia, asserting claims under Sections 10(b) and 20(a) of the Exchange Act.
- Investors seeking to be appointed lead plaintiff must move by January 12, 2026, as firms including Bleichmar Fonti & Auld, The Rosen Law Firm, and Levi & Korsinsky solicit participants.
- The complaints allege inflated enrollment through retaining so‑called ghost students and cite ignored background and licensure requirements, excessive teacher caseloads, and curtailed special education services.
- Filings also reference whistleblower accounts that purportedly describe directives to delay hiring and deny services to preserve margins.
- Stride disclosed on October 28, 2025 that poor customer experience led to an estimated 10,000–15,000 fewer enrollments and a muted outlook, with stock drops reported after September and October disclosures.