Stride, Inc. (LRN) Stock Drop Lawsuit Investigation
Recover Your Losses
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What is the Stride (LRN) Investigation About?
Stride, Inc. (NASDAQ: LRN) shares plummeted over 51% in intraday trading on October 29, 2025, after the company reported a weak 2026 financial forecast, citing platform upgrades that resulted in a “poor customer experience” and a large decrease in enrollment numbers. Gibbs Mura is investigating whether Stride, Inc. misled or provided false statements to investors in violation of federal securities laws. This potential lawsuit seeks to help Stride shareholders recover their losses.
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Why is Stride (NYSE: LRN) Stock Dropping?
On October 28, 2025, Stride reported a financial outlook for the fiscal year 2026 that failed to meet analysts’ expectations. During the company’s earnings call, Stride’s CEO claimed that the “muted” financial outlook is in part due to the implementation of technology upgrades, which “did not go as smoothly as we anticipated,” and led to negative feedback from customers. This “poor customer experience” resulted in higher withdrawal rates and lower conversion rates than the company previously expected.
Following this news, shares of Stride, Inc. plummeted over 51% in intraday trading on October 29, 2025, causing further harm to investors.
Stride (LRN) News: School Board Files Complaint Against Stride
On September 10, 2025, Gallup-McKinley County Schools Board of Education announced that it filed a complaint against Stride, accusing the company of “fraud, deceptive trade practices, systemic violations of law, and intentional and tortious misconduct,” among other deceptive practices. News articles detail specific allegations against Stride, including that the company exaggerated student attendance counts to drive up revenue, neglected special education students and violated state law on student-teacher ratios.
Following this news, shares of Stride, Inc. fell over 10% on September 10, 2025, causing harm to investors.
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You “shouldn’t presume that powerful banks and other powerful interests can just get away with doing bad things. Good, qualified counsel that are committed to a cause can usually figure out how to prosecute such cases effectively and prevail.”
–Eric Gibbs, award-winning securities attorney
Additional FAQs
How do securities class action lawsuits work?
Publicly traded companies are legally required to provide truthful, accurate information to investors. When a company misrepresents facts, conceals risks, or engages in fraudulent practices, investors can suffer significant financial harm. Securities class action lawsuits allow affected shareholders to seek recovery for their investment losses and hold the company accountable for violating the law.
How can I get my money back?
If you invested in Stride, you may be eligible to recover your investment losses if the investigation leads to a lawsuit. Fill out the form above so that our team can confidentially contact you about your potential options.
Do I have to pay anything out of pocket?
No; participating in a securities class action lawsuit with our firm will never cost you anything out of pocket. If a lawsuit is filed and is successful down the line, the court typically has the discretion to award fair attorney's fees out of a gross recovery.
What is your firm’s experience with investor lawsuits?
Our financial fraud and securities lawyers have more than two decades of experience prosecuting fraud and have successfully litigated against some of the largest companies in the United States. We’ve recovered more than a billion dollars on our clients’ behalf.
Am I eligible to participate in the potential lawsuit if I sold all my shares after the drop?
Whether you choose to hold or sell your shares will not impact your eligibility for this investigation. Your eligibility to join this potential class action depends on if you purchased your shares during the relevant period, called the “class period.” This is still an investigation, so a class period has not been established yet.
Our Securities & Investment Fraud Lawyers & Team
Dave Stein
Dave represents clients in securities, financial fraud, product liability and consumer protection cases, praised by Law360 as a "tenacious" litigator.
View full profileEric Gibbs
A founding partner at the firm, Eric has negotiated groundbreaking settlements that favorably shaped laws and resulted in business practice reforms.
View full profileLinda Lam
Linda has recovered millions of dollars prosecuting fraud, breach of contract, and breach of fiduciary cases against large banks and insurance companies.
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Eileen represents investors and consumers harmed by financial fraud and other corporate misconduct. She also executes on the firm's strategic vision.
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Amy has built a reputation in the plaintiffs’ bar for delivering results to consumers and sexual assault survivors in class actions and mass torts.
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Wynne works with consumers harmed by corporate wrongdoing and financial fraud.
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Alana assists with various cases addressing corporate harm, including data breach, financial fraud, and overdraft fees lawsuits.
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Dani is an integral member of the sexual assault and financial fraud teams and works with clients through all stages of the litigation process.
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Anna represents plaintiffs in class action and complex litigation involving corporate wrongdoing and financial fraud.
View full profileGibbs Mura's Securities and Financial Fraud Experience
We represent individuals, whistleblowers, employees, and small businesses across the U.S. against the world's largest corporations. Our award-winning lawyers have achieved landmark recoveries and over a billion dollars for our clients in high-stakes class action and individual cases involving consumer protection, data breach, digital privacy, and federal and financial fraud lawsuits. Our attorneys have received numerous honors for their work, including “Top Plaintiff Lawyers in California,” “Top Class Action Attorneys Under 40,” “Consumer Protection MVP,” “Best Lawyers in America,” and “Top Cybersecurity/ Privacy Attorneys Under 40.
Our Featured Securities Team
Dave Stein
Eric Gibbs
Linda Lam
Eileen Epstein Carney
Amy Zeman
Wynne Tidwell
Alana Ervin
Anna Katz