Stride Faces Securities Class Action Over Alleged Inflated Enrollments After Sharp Stock Plunge

Overview

• Scott+Scott filed MacMahon v. Stride, Inc., No. 1:25-cv-02019, in the U.S. District Court for the Eastern District of Virginia, naming the company and certain leaders as defendants.
• The complaint asserts violations of Sections 10(b) and 20(a) and SEC Rule 10b-5, alleging inflated enrollment figures, excessive teacher caseloads, compliance lapses, whistleblower suppression, and lost enrollments.
• The proposed class covers purchases from October 22, 2024 through October 28, 2025, with a lead-plaintiff motion deadline of January 12, 2026.
• Plaintiffs cite a September 14, 2025 report of a Gallup-McKinley County Schools Board complaint alleging fraud and “ghost students,” after which Stride’s shares fell about 11.7% the next trading day.
• On October 28, 2025 Stride disclosed that poor customer experience led to higher withdrawals, lower conversion, and an estimated 10,000–15,000 fewer enrollments, and the stock fell more than 54% on October 29.