Stride Investors Face Jan. 12 Deadline in Securities Class Action Over Enrollment, Compliance Claims

Overview

• A federal class action is on file in the U.S. District Court for the Eastern District of Virginia covering purchases from October 22, 2024 through October 28, 2025.
• Investors seeking to serve as lead plaintiff must move by January 12, 2026, and no class has been certified.
• Filed complaints allege inflated enrollment figures, retention of "ghost students," unlawful teacher caseloads, and ignored compliance requirements, including background checks, licensure and special education services.
• On October 28, Stride disclosed execution and system implementation issues that led to higher withdrawals, lower conversion and an estimated 10,000–15,000 fewer enrollments.
• Reports and disclosures corresponded with sharp share declines, including about 11.7% on September 15 after a school board complaint report and steep intraday losses on October 29 following results.