A class action lawsuit has been filed against Stride Inc., alleging that the company engaged in securities fraud between October 22, 2024 and October 28, 2025. The complaint accuses Stride of inflating enrollment numbers by retaining "ghost students," cutting staffing costs by assigning teachers workloads that exceeded statutory limits, and failing to comply with background checks, licensure laws, and federally mandated special education services. The lawsuit also claims that Stride suppressed whistleblowers who exposed financial directives to delay hiring and deny services in order to preserve profit margins, and asserts that these practices led to the loss of existing and potential enrollments. The legal action seeks to recover losses suffered by investors during the specified period.