Stride Investors Face Jan. 12 Deadline in Suit Alleging 'Ghost Students' and Platform Failure

Overview

• A federal class action on behalf of purchasers between October 22, 2024 and October 28, 2025 is pending in the U.S. District Court for the Eastern District of Virginia.
• The complaint alleges Stride inflated enrollment by retaining so‑called “ghost students” and cut staffing costs by exceeding statutory teacher caseload limits.
• Additional allegations include ignored background checks and licensure requirements, suppression of whistleblowers, and the loss of existing and potential enrollments.
• An earlier school‑district complaint in mid‑September 2025 preceded an approximately 11% share decline, and Stride’s October 28 disclosure of a platform upgrade problem and 10,000–15,000 fewer enrollments was followed by a one‑day 54% drop.
• Multiple firms—including Hagens Berman, Bernstein Liebhard, Levi & Korsinsky, Bragar Eagel & Squire, Rosen, The Gross Law Firm, and Bleichmar Fonti & Auld—are urging investors and potential whistleblowers to act before the January 12 lead‑plaintiff deadline, and no class has been certified.