Stride Class Action Lawsuit Overview
The class action lawsuit asserts securities fraud claims under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 on behalf of investors in Stride securities. The class action is pending in the U.S. District Court for the Eastern District of Virginia. It is captioned MacMahon v. Stride, Inc., et al., No. 1:25-cv- 02019.
If you lost money on your Stride investment, you are encouraged to submit your information using the form on this page. You may also email ross@bfalaw.com or call 212.789.3619.
Why is Stride Being Sued for Securities Fraud?
Stride, Inc. has been sued for securities fraud following significant stock drops resulting from potential violations of the federal securities laws. The declines in Stride’s stock price caused significant losses to investors.
Stride is an education technology company that provides an online platform to students throughout the U.S. During the relevant period, Stride stated it was seeing “increasing growth in our business,” “in-year strength in demand” for its products and services, and that its customers and potential customers “continue to choose us in record numbers.”
As alleged, in truth, Stride had inflated enrollment numbers by retaining “ghost students,” ignored compliance requirements for its employees, and had “poor customer experience” that resulted in “higher withdrawal rates,” “lower conversion rates,” and had driven students away.
Why did Stride’s Stock Drop?
On September 14, 2025, a report allegedly stated that the Gallup-McKinley County Schools Board of Education had filed a complaint against Stride. The complaint filed by Gallup-McKinley County Schools Board of Education alleged claims for fraud, deceptive trade practices, systemic violations of law, and intentional and tortious misconduct. It claimed Stride inflated enrollment numbers by retaining “ghost students” on rolls to secure state funding and ignored compliance requirements, including background checks and licensure laws for its employees.
This news caused the price of Stride stock to drop $18.60 per share, or more than 11%, from a closing price of $158.36 per share on September 12, 2025, to $139.76 per share on September 15, 2025.
Then, on October 28, 2025, Stride stated that “poor customer experience” resulted in “higher withdrawal rates,” “lower conversion rates,” and drove students away. Stride estimated the impact caused approximately 10,000-15,000 fewer enrollments and stated that, because of this, its outlook is “muted” compared to prior years.
This news caused the price of Stride stock to drop $83.48 per share, or more than 54%, from a closing price of $153.53 per share on October 28, 2025, to $70.05 per share on October 29, 2025.
Stride (LRN) Stock Chart
NYSE online chart showing the Stride (LRN) stock drops following the September and October 2025 announcements.
What is the Stride Leadership Deadline?
You may ask the Court no later than January 12, 2026, to appoint you as Lead Plaintiff through counsel of your choice.
To be a member of the Class, you need not take any action at this time. The ability to share in any potential future recovery is not dependent on serving as Lead Plaintiff.
How Do I Submit My Information?
If you lost money when Stride securities dropped in price, you are encouraged to submit your information using the form on this page to speak with an attorney about your rights.
You can also contact:
Ross Shikowitz
ross@bfalaw.com
212.789.3619
All representation is on a contingency fee basis; there is no cost to you. Shareholders are not responsible for any court costs or expenses of the class action lawsuit. The firm will seek court approval for any potential fees and expenses.
Why Bleichmar Fonti & Auld LLP?
BFA is a leading international law firm representing plaintiffs in securities class actions and shareholder litigation. It has been named a top plaintiff law firm by Chambers USA, The Legal 500, and ISS SCAS.
BFA attorneys have been named “Elite Trial Lawyers” by the National Law Journal, among the top “500 Leading Plaintiff Financial Lawyers” by Lawdragon, “Titans of the Plaintiffs’ Bar” by Law360 and “SuperLawyers” by Thomson Reuters.
BFA’s notable successes include a recovery of over $900 million in value from Tesla, Inc.’s Board of Directors, as well as $420 million from Teva Pharmaceutical Ind. Ltd.
Attorney advertising. Past results do not guarantee future outcomes.
