SHAREHOLDER INVESTIGATION: Faruqi & Faruqi, LLP Examining Potential Securities Law Violations at Stride

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6:54 AM on Sunday, December 21

The Associated Press

NEW YORK--(BUSINESS WIRE)--Dec 21, 2025--

Faruqi & Faruqi, LLP, a leading national securities law firm, is investigating potential claims against Stride, Inc. (“Stride” or the “Company”) (NYSE: LRN).

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Faruqi & Faruqi is a leading national securities law firm with offices in New York, Pennsylvania, California and Georgia. The firm has recovered hundreds of millions of dollars for investors since its founding in 1995. See www.faruqilaw.com.

On September 14, 2025, Simply Wall St. published a report stating that the Gallup-McKinley County Schools Board of Education had filed a complaint against Stride, alleging fraud, deceptive trade practices, systemic violations of law, and intentional and tortious misconduct, including inflating enrollment numbers by retaining “ghost students” on rolls to secure state funding per student and ignoring compliance requirements, including background checks and licensure laws for its employees.

On this news, Stride’s stock price fell $18.60, or 11.7%, to close at $139.76 per share on September 15, 2025, thereby injuring investors.

Then, on October 28, 2025, Stride released its first quarter fiscal 2026 financial results, revealing the Company had purposely “limit[ed] enrollment growth while we improve our execution.” The Company also revealed it had experienced “system implantation issues” resulting in “higher withdrawal rates and lower conversion rate.” The Company stated that “these factors resulted in approximately 10,000 to 15,000 fewer enrollments” and “these challenges will likely restrict [its] in-year enrollment growth.”

On this news, Stride’s stock price fell as much as 51% during intraday trading on October 29, 2025, thereby injuring investors further.

To learn more about the Stride investigation, go to www.faruqilaw.com/LRN or call Faruqi & Faruqi partner Josh Wilson directly at 877-247-4292 or 212-983-9330 (Ext. 1310).

Attorney Advertising. The law firm responsible for this advertisement is Faruqi & Faruqi, LLP ( www.faruqilaw.com ). Prior results do not guarantee or predict a similar outcome with respect to any future matter. We welcome the opportunity to discuss your particular case. All communications will be treated in a confidential manner.

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CONTACT: Faruqi & Faruqi, LLP

Josh Wilson

877-247-4292 or 212-983-9330 (Ext. 1310)

KEYWORD: NEW YORK UNITED STATES NORTH AMERICA

INDUSTRY KEYWORD: CLASS ACTION LAWSUIT PROFESSIONAL SERVICES LEGAL

SOURCE: Faruqi & Faruqi, LLP

PUB: 12/21/2025 09:54 AM/DISC: 12/21/2025 09:54 AM

http://www.businesswire.com/news/home/20251221978032/en