Stride, Inc. (LRN) Investigation

Stride provides an educational platform to deliver online learning to students throughout the U.S. The company’s revenues come mostly from sales to virtual and blended public schools. The company is mostly paid from taxpayer funds.

The investigation is focused on the propriety of Stride’s repeated assurances that its products “are designed to help learners of all ages reach their full potential through inspired teaching and personalized learning,” its services include recruitment of state-certified teachers, and it takes its legal compliance obligations seriously.

Stride’s assurances may have come into question on September 14, 2025, when Simply Wall St. published “Fraud Allegations and Lawsuit Might Change the Case for Investing in Stride (LRN),” which revealed  Gallup-McKinley filed a complaint against Stride, alleging fraud, deceptive practices, and systemic legal violations that prioritized profits over student welfare.

The complaint filed by Gallup-McKinley reportedly accuses Stride of prioritizing profit margins over student welfare through a series of deceptive practices. Specifically, the allegations include:

• Contracting Violations: Willful disregard of New Mexico state laws to improperly secure contracts with various school districts, potentially violating legal compliance requirements ahead of SEC filings.
• Student Enrollment Inflation: Artificially boosting reported student enrollment figures by including students who never officially started or those who had been absent for at least ten consecutive days.
• Teacher Ratios and Licensing: Intentionally increasing student-to-teacher ratios to inflate profit margins and employing a significant number of teachers who were insufficiently licensed.
• Market Manipulation: Utilizing these alleged unlawful business practices to deliberately lower overhead costs for the sole purpose of inflating the company’s stock values for market manipulation.

On this news, Stride’s stock price plunged $18.60, or 11%, in heavy trading.

FREQUENTLY ASKED QUESTIONS ABOUT THE CASE

What is the LRN investigation about?

We are focused on investors’ losses and whether Stride may have intentionally misled investors about its business practices, which Gallup-McKinley says puts profits over pupils.

WHAT SHOULD I DO?

I worked at LRN. What should I do?

If you were an employee of LRN, you may have valuable information that could be relevant to the investigation. Hagens Berman is one of the nation’s top whistleblower law firms, and has successfully represented many individuals who come forward with information regarding corporate malfeasance. Under the new SEC Whistleblower program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, contact Reed Kathrein at 844-916-0895 or [email protected].

There are multiple law firms participating, do I need to contact all of them?

No, you do not need to contact all participating law firms. Generally, class-action investigations and lawsuits are consolidated into a single case to streamline the legal process, and attorneys from only a few law firms are selected to serve in a leadership role on the consolidated case. Hagens Berman has a proven track record of being appointed to leadership roles in complex, multidistrict litigation regarding investor fraud and other consumer rights issues, and your claim will be handled by attorneys who have helped secure approximately $325 billion in class-action settlements on behalf of individuals who have suffered due to corporate malfeasance and the wrongdoing of other powerful institutions.

AM I ELIGIBLE?

What is the threshold amount to be eligible? What are “substantial” losses?

The threshold amount and the definition of "substantial" losses may vary depending on a number of factors specific to the case, including the size of the company, market cap, shares outstanding and who holds them and the damages alleged by the fraud. In general, to be eligible to participate in a class-action lawsuit, you must be able to demonstrate that you suffered financial losses as a result of the alleged wrongdoing and that your losses meet the criteria set by the court or law firm. Fill out the form and submit your losses.

CAN I PARTICIPATE?

Am I affected? What do I need to do to participate?

If you were an investor in LRN, you may be affected and eligible to participate in the case. To determine your eligibility and potential involvement, fill out the form and submit your losses.

Can any LRN investor participate?

In most class-action investigations and cases, any investor who meets the eligibility criteria, including purchasing the shares during the relevant period, can participate, regardless of the size of their investment. Fill out the form to find out your rights.

I bought on a non-U.S. Exchange. Can I participate?

No. This investigation only covers shares bought on a U.S. exchange, i.e. NASDAQ or NYSE. Fill out the form to find out your rights.

Am I included if I still hold my shares, or do I need to sell to participate?

Participation is based on purchasing shares during the relevant period, rather than your current holdings. Accordingly, you do not need to sell to participate. Fill out the form to find out your rights.