Hagens Berman Investigates Stride Inc. for Alleged Fraud and Stock Crash Linked to 'Ghost Students'
Investigation into Stride, Inc. and Allegations of Fraud
Hagens Berman, a well-known law firm specializing in shareholder rights, has recently turned its attention to Stride, Inc. (NYSE: LRN) following allegations of substantial market deception. Investors are cautioned about the impending deadline of January 12, 2026, to join a class action lawsuit aimed at seeking accountability for claims that the company indulged in misleading practices involving 'ghost students' and concealed technology issues.
Background of the Case
The core of the litigation revolves around accusations that Stride, Inc. used 'ghost students'—individuals who never officially enrolled or were absent for long durations—to inflate its enrollment figures and, consequently, its profits. This unethical approach allegedly misled investors about the company's actual operational health and growth prospects. The fallout from these revelations led to a staggering 54% drop in Stride's stock value, resulting in an enormous loss of market capitalization.
According to the legal complaint, not only were investors misled about enrollment metrics, but Stride's management allegedly downplayed serious technological failures impacting its operations. CEO James Rhyu expressed that these failures led to a
Topics Financial Services & Investing）
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