Stride Inc. Slammed With SEC Complaint Over Alleged Fraud and Deceptive Practices
Stride Inc., a prominent US-based online education provider, faces a significant setback as Gallup-McKinley school district files a formal complaint with the Securities and Exchange Commission (SEC). The complaint alleges serious misconduct, including fraud, deceptive practices, and systemic legal violations. Stride's shares plummeted following the news.
The complaint, led by prominent plaintiffs' rights firm Hagens Berman, alleges that Stride has been inflating student enrollment figures and prioritizing profit over educational compliance. It also accuses the company of contracting violations, teacher ratio and licensing issues, and market manipulation. The investigation, led by renowned lawyer Reed Kathrein, focuses on Stride's assurances about its educational products and services, and its legal compliance obligations.
Stride, previously known as K12 Inc., has a history of being in the spotlight of securities lawsuits. However, there is no widely known current case where Kathrein is specifically leading the charge against Stride Inc. Hagens Berman urges investors who suffered significant losses to submit their losses now, and persons with non-public information are encouraged to assist in the investigation or take advantage of the SEC Whistleblower program.
On September 14, 2025, Stride's stock price dropped by $18.60, or 11%, in heavy trading following the news of the complaint. The complaint alleges serious misconduct that could have significant implications for the company and its investors. Stride Inc. has not yet publicly responded to the allegations.
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