Stride Faces Federal Securities Class Action Over Enrollment and Compliance Allegations

Overview

• MacMahon v. Stride, Inc., No. 1:25-cv-02019, is pending in the U.S. District Court for the Eastern District of Virginia on behalf of investors.
• The putative class covers purchases of Stride securities from October 22, 2024 through October 28, 2025 under Sections 10(b) and 20(a) and SEC Rule 10b-5.
• The complaint alleges Stride inflated enrollments with “ghost students,” ignored compliance requirements, overloaded teacher caseloads, suppressed whistleblowers, and lost enrollments.
• On October 28, 2025, Stride disclosed that poor customer experience and system issues led to an estimated 10,000–15,000 fewer enrollments and a muted outlook.
• The stock fell 11.7% on September 15, 2025 after reports of a school-board complaint and dropped about 54% on October 29, 2025 after the company’s disclosure, as multiple plaintiff firms now solicit investors ahead of the lead-plaintiff deadline.