Stride Investor Litigation Widens With New Class Action and Fresh Probes

Overview

• Bleichmar Fonti & Auld filed a securities class action in the Eastern District of Virginia, captioned MacMahon v. Stride, Inc., et al., No. 1:25-cv-02019, asserting claims under Sections 10(b) and 20(a).
• Hagens Berman announced an investigation and outlined allegations that Stride inflated enrollment with so-called ghost students, overextended teacher caseloads, ignored licensure and background-check requirements, and discouraged whistleblowers.
• Berger Montague highlighted a class period running from October 22, 2024 through October 28, 2025 and is soliciting investors interested in serving as lead plaintiff by the January 12 deadline.
• Stride disclosed on October 28 that poor customer experience led to higher withdrawals, lower conversion, and an estimated 10,000–15,000 fewer enrollments, and it guided to roughly 5% sales growth for 2026 versus about 19% annualized previously.
• Reports on September 14 about a Gallup-McKinley lawsuit and the October 28 disclosure were followed by sharp stock declines, with shares falling more than 54% on October 29, while all misconduct claims remain unproven pending litigation.