A class action lawsuit has been filed against Stride Inc., alleging securities fraud that affected investors between October 22, 2024, and October 28, 2025. According to the complaint, Stride is accused of inflating enrollment numbers by retaining "ghost students," cutting staffing costs by assigning teachers workloads beyond statutory limits, and failing to comply with background checks, licensure laws, and federally mandated special education services. The lawsuit also claims that whistleblowers who documented financial directives to delay hiring and deny services were suppressed, and that these actions led to the loss of existing and potential enrollments. The case seeks to recover losses suffered by shareholders as a result of these alleged actions.