Stride Hit With Securities Class Action Over 'Ghost Students' and Platform Failure

Overview

• A securities fraud complaint is pending in the U.S. District Court for the Eastern District of Virginia on behalf of investors who bought Stride shares between October 22, 2024 and October 28, 2025.
• Filings allege Stride overstated enrollments by retaining so-called ghost students, pushed teacher caseloads beyond statutory limits, and ignored background check, licensure, and special education requirements.
• The complaint also asserts that whistleblowers who reported directives to delay hiring and deny services to protect margins were suppressed.
• On October 28, 2025, Stride disclosed a failed platform upgrade that led to a poor customer experience and an estimated 10,000 to 15,000 fewer enrollments, and the stock fell about 54% in one day.
• An earlier September 14, 2025 report on a Gallup-McKinley school district complaint referencing ghost students preceded an 11.7% share decline, and multiple law firms now urge investors to contact them as no class has been certified.