Stride Investors Face Jan. 12 Deadline to Seek Lead Role in Securities Case Alleging 'Ghost Students' and Tech Missteps
The case centers on an October disclosure of 10,000–15,000 lost enrollments that preceded a 54% stock drop.
Overview
- MacMahon v. Stride, Inc., No. 1:25-cv-02019, is pending in the U.S. District Court for the Eastern District of Virginia.
- Complaints allege inflated enrollment through retaining “ghost students,” compliance failures, excessive teacher caseloads, and suppression of whistleblowers.
- Plaintiffs tie investor losses to Stride’s Oct. 28, 2025 results noting system implementation issues, higher withdrawals, lower conversions, and an estimated 10,000–15,000 fewer enrollments.
- Stride shares fell 11.7% on Sept. 15, 2025 after reporting on the Gallup‑McKinley complaint, then dropped about 54% on Oct. 29, 2025 following the company’s disclosure.
- Multiple law firms are recruiting investors to move for lead‑plaintiff status by Jan. 12, 2026 for a class period of Oct. 22, 2024 to Oct. 28, 2025, and no class has been certified.