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Stride Investors Alert: Urgent Action Required Before Deadline on Class Action

In a crucial call to action for investors in Stride, Inc. (NYSE: LRN), prominent national shareholder rights law firm Hagens Berman reminds stakeholders that the deadline to seek appointment as lead plaintiff in a significant securities class action lawsuit is rapidly approaching, with January 12, 2026, marking the last day for legal motions. Investors who have faced considerable losses due to alleged undisclosed operational failures are strongly encouraged to reach out to Hagens Berman to understand their rights and potential recovery options.

The ongoing lawsuit centers on grave allegations of fraudulent activity within Stride, notably two separate schemes that purportedly inflated student enrollment figures via the controversial practice of retaining 'Ghost Students' and failed to adequately disclose a disastrous technology platform collapse. These allegations are particularly alarming, as reflected in the staggering 54% drop in stock value on a single day, resulting in billions lost in market capitalization for investors.

The details disclosed in the complaint shed light on how Stride and its executive team allegedly misled investors regarding the company's core operational metrics and overall business robustness. The high-profile failure of a platform upgrade, acknowledged by CEO James Rhyu as contributing to a 'poor customer experience', starkly contradicted previous claims of steady growth. This inconsistency raises serious concerns about the company's commitment to transparency and accountability.

The Alleged Dual Fraud: Key Claims and Impacts

1. The Alleged Enrollment Fraud

The lawsuit posits that Stride engaged in dubious business practices, namely employing 'Ghost Students'—students who were either never registered or had long being absent—to artificially boost enrollment numbers and profit margins. The first hint of this misconduct came with an initial stock price decline of 11% following revelations related to these unscrupulous practices.

2. Concealed Technology Catastrophe

Equally troubling is the claim that Stride failed to disclose significant issues related to a critical platform upgrade conducted during the summer. This upgrade severely restricted access for approximately 10,000 to 15,000 enrolled students, hindering the company's growth trajectory and necessitating expensive remediation efforts. Following this disclosure, the company had to forecast a disheartening slowdown in sales growth, forecasting only a 5% increase down from a consistent historical figure of 19%—resulting in the aforementioned 54% crash in stock price.

3. Alleged Recoverable Damages

The lawsuit aims to secure recovery for investors who purchased Stride securities during the Class Period, which runs from October 22, 2024, to October 28, 2025. It seeks to hold Stride and several of its leading executives accountable for their allegedly deceptive statements related to the company's operational and financial status.

Next Steps for Affected Investors

Hagens Berman is recognized as a leading firm in plaintiff litigation, noted for advocating on behalf of investors in complex securities fraud cases like this one. Partner Reed Kathrein is actively offering guidance to investors who bought into Stride securities within the aforementioned class period and incurred significant losses due to the concealed operational failures.

It cannot be overstated how pivotal the January 12 deadline will be for potential lead plaintiffs in this matter; therefore, swift action is essential. For investors focusing on recovery, Hagens Berman provides a secure form for submitting claims related to Stride (LRN) losses.

For those with non-public information regarding Stride, considering inquiry or assistance through the SEC Whistleblower program might be a viable route, as it offers rewards of up to 30% of any successful recovery initiated by the SEC.

For additional information from Hagens Berman about the case and your potential involvement, you can reach out to Reed Kathrein directly at 844-916-0895 or via email at [email protected]. Stay informed and act quickly to protect your investments in this unfolding situation.