Stride, Inc. Faces Allegations of Fraudulent Enrollment Leading to 54% Stock Crash
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Dec 27 2025
0mins
Source: PRnewswire
- Fraud Allegations: Stride, Inc. is accused of inflating enrollment figures using 'Ghost Students', resulting in a 54% stock crash in a single day, which directly caused billions in market capitalization losses and severely impacted investor confidence.
- Technology Platform Failure: The CEO acknowledged that the technology platform upgrade failure led to 'poor customer experience', contradicting prior assurances of strong growth, which further exacerbated investor losses.
- Legal Proceedings Update: Hagens Berman law firm reminds investors that January 12, 2026, is the deadline to apply as lead plaintiff in the pending class action lawsuit, aiming to recover losses for investors misled by Stride's alleged fraudulent disclosures.
- Compliance Issues: The lawsuit highlights Stride's systematic practice of inflating enrollment data and maintaining improper student-to-teacher ratios without disclosure, indicating severe operational and compliance failures that could lead to broader legal repercussions.
Analyst Views on LRN
Wall Street analysts forecast LRN stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for LRN is 106.75 USD with a low forecast of 82.00 USD and a high forecast of 125.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
5 Analyst Rating
3 Buy
2 Hold
0 Sell
Moderate Buy
Current: 72.930
Low
82.00
Averages
106.75
High
125.00
Current: 72.930
Low
82.00
Averages
106.75
High
125.00
About LRN
Stride, Inc. is a technology company providing an educational platform to deliver online learning to students throughout the U.S. It provides a range of services including K-12 education, career learning, professional skills training, and talent development. Its platform hosts products and services to attract, enroll, educate, track progress, and support students. These products and services, spanning curriculum, systems, instruction, and support services, are designed to help learners of all ages reach their full potential through inspired teaching and personalized learning. Its platform addresses two markets in the K-12 space: General Education and Career Learning. Products and services for the General Education market are focused on core subjects for kindergarten through twelfth grade students to help build a common foundation of knowledge. Career Learning products and services are focused on developing skills to enter and succeed in careers in high-growth and in-demand industries.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
