Stride (LRN) Securities Class Action Lawsuit Investigation

Shamis & Gentile P.A., a law firm that advocates for investors who are victims of securities fraud, is investigating potential claims against Stride, Inc. (LRN)

If you purchased or acquired Stride securities during the relevant period and suffered losses, you may be eligible to join this securities investigation and seek compensation.

About Stride

Stride is a provider of online and blended education programs for students in kindergarten through high school.

The company serves a diverse range of learners by offering virtual public and private school options, career learning programs, and supplemental educational services.

Potential Concerns Under Investigation

Lawyers are investigating whether Stride may have made misleading statements or omitted material facts about its business practices, compliance, and financial results. Several key events and disclosures could be central to this investigation.

In its Q1 FY2024 press release on October 24, 2023, Stride highlighted record performance and credited “General Education and Career Learning enrollment strength.” In Q2 FY2025, the company reported average enrollment of 230,600 students, up 19.4% year over year.

These statements may be reviewed to determine whether they accurately reflected the true nature of Stride’s enrollment, as later allegations claim the company retained “ghost students” to inflate reported numbers.

Stride’s claims of providing “high-quality learning experiences” and “personalized” education may also be under scrutiny.

A lawsuit filed by Gallup-McKinley County Schools on August 27, 2025, alleged serious academic and legal violations, including unlicensed teachers, high staff turnover, and poor outcomes such as a 27.67% graduation rate and math proficiency rates significantly below public-school averages.

When the media coverage of this lawsuit became widespread in the following weeks, Strides stock stock price fell $18.60 per share, or 11.7%, to close at $139.76 on September 15, 2025.

The investigation may also focus on Stride’s financial guidance and outlook. Before October 2025, executives had described “strong demand” and record enrollments.

On October 28, 2025, Stride released its Q1 FY2026 results and issued sales guidance about $120 million below analyst expectations, a sharp reversal from prior optimism.

Following this news, the stock fell 54.4%, from $153.53 per share on October 28 to $70.05 by market close on the next trading day, resulting in significant losses for investors.

Your Rights and Next Steps

This is an active investigation, not a filed lawsuit. Investors who purchased Stride securities between August 2023 and October 27, 2025 and suffered financial losses may have important legal rights.

If lawyers determine that Stride may have made misleading statements or omitted key facts, a class action lawsuit could be filed on behalf of affected investors.

Investors are encouraged to gather documentation of their Stride purchases, sales, and account statements. If the investigation results in a class action, those who join may be able to seek compensation for losses related to the alleged misconduct.

Lawyers are ready to help investors understand their options and guide them through the process. Participation in a class action is typically at no out-of-pocket cost to investors, as legal fees are usually paid from any recovery obtained.

You May Be Entitled to Compensation

Securities investigations are time-sensitive. If you purchased Stride securities between August 2023 and October 27, 2025, you may be eligible to seek compensation for your losses.

To protect your rights and take the next step, complete the form below to join the investigation.