Stride Faces Complaint From Gallup-McKinley County Schools Over Alleged Fraud

MT Newswires Live

2025/09/10

Stride (LRN) is facing a legal complaint from the Gallup-McKinley County Schools Board of Education in New Mexico, alleging fraud, deceptive trade practices and systemic violations of law.

Filed in New Mexico's 11th Judicial District Court, the complaint accuses the virtual education provider of "intentional and tortious misconduct designed to maximize profit margins at the expense of students and their education, in which a vast majority of students are Native American," the board said Wednesday in a statement.

The board is seeking compensatory and punitive damages, triple damages under New Mexico's Unfair Trade Practices Act, and restitution of taxpayer funds, according to the statement.

Stride didn't immediately respond to a request for comment from MT Newswires.

Stride shares fell 2.4% in recent Wednesday trading.

Price: 162.10, Change: -4.01, Percent Change: -2.41

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