Shares of Stride, Inc. dropped more than 45% in intraday trading on October 29, 2025, after the company issued forward guidance that missed analyst expectations. The decline follows recent reporting from Simply Wall St. highlighting a complaint filed by the Gallup-McKinley County Schools Board of Education, which accuses Stride of misconduct and inflating enrollment figures — potentially amounting to fraud. These new allegations add to a growing list of concerns previously raised by Fuzzy Panda Research and other investigative outlets regarding Stride’s business practices.
The complaint alleges that Stride made misleading statements and omissions regarding the Company's products and services to public and private schools, school districts, and charter boards. Throughout the Class Period, Stride represented to investors that "[t]hese 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." Unbeknownst to investors, Stride was inflating enrollment numbers, cutting staff costs beyond required statutory limits, ignoring compliance requirements, and losing existing and potential enrollments.
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