Stride, Inc. (NYSE: LRN)

This investigation is for anyone who acquired securities in Stride, Inc. (NYSE: LRN) prior to October 16, 2024.

The Law Offices of Howard G. Smith believes that the Company and certain of its executives violated federal law. Specifically, the Law Offices of Howard G. Smith believes that the Company misled investors regarding its financial condition. More specifically, the Law Offices of Howard G. Smith believes that the Company misled investors by telling investors that it had a steady source of revenue when the Company derived a significant amount of its revenue from temporary COVID relief funds.

On October 16, 2024, Fuzzy Panda Research published a report alleging, among other things, that Stride has been “misleading investors about a major source of its profits,” estimating that the Company’s Elementary & Secondary School Emergency Relief Funds (“ESSER”) accounted for 26% of 2024 EBITDA and 45% of Net Income and  that the “total increase in revenue for Stride Schools from FY 2021-2024 due to ESSER grants alone is >$330 million of revenue.” Additionally, the report stated that Stride “collected taxpayer dollars for kids they were not educating,” with an estimated 5-10% inflation of enrollment numbers due to “Ghost Students.” On this news, the price of the Company’s stock dropped precipitously on unusually heavy trading volume.

The Law Offices of Howard G. Smith seeks to recover damages on behalf of class members. If you acquired securities in Stride, Inc. (NYSE: LRN) prior to October 16, 2024 prior to October 22, 2024 you may join the lawsuit by submitting your information online, or you may call the Law Offices of Howard G. Smith and speak to Mr. Smith directly to learn how he can protect your rights.