Bragar Eagel & Squire, P.C. Reminds Investors That a Class Action Lawsuit Has Been Filed Against Stride, Inc. (f/k/a K12, Inc.) and Encourages Investors to Contact the Firm
NEW YORK, Jan. 15, 2021 (GLOBE NEWSWIRE) – Bragar Eagel & Squire, PC, a nationally recognized shareholder rights law firm, reminds investors that a class action lawsuit has been filed in the U.S. District Court for the Eastern District of Virginia on behalf of investors who purchased common shares of Stride, Inc. (f / k / a K12, Inc.) (NYSE: LRN) between April 27, 2020 and September 18, 2020 (the “Class Period”). Investors have until January 19, 2021 to apply to the court for appointment as the lead plaintiff in the lawsuit.
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Stride is a technology-based education company providing in-house and third-party curricula, teacher training, administrative support, information technology support, software systems, and educational services. The company operates virtual learning systems worldwide.
Contrary to what Stride alleged, reports surfaced that Stride’s teacher education in Miami-Dade County – one of the largest school districts in the country – had been utterly inadequate.
In this news, Stride common stock fell sharply 7% in two trading days, closing at $ 37.70 on August 27, 2020.
When the class started on August 31, 2020, the situation worsened. Stride had major technical problems and glitches as Miami-Dade County’s teachers and students were unable to even log into the platform and access its content, leading local officials to publicly scold Stride for doing it were “not ready” for the start of the school year. In response to the overwhelming number of complaints from outraged parents, the MiamiDade County School District convened a board meeting to discuss Stride’s many mistakes. During the meeting, Miami-Dade County Public Schools Superintendent Alberto Carvalho announced that he had never signed the $ 15.3 million no-bid contract with Stride and the Stride School District never for providing his For services and products.
The story goes on
In this news, Stride common stock fell 10.5% in two trading days, closing at $ 34.89 on September 3, 2020.
A week later, after another board meeting that lasted more than 13 hours and included 400 speakers, the Miami-Dade County Public Schools Board agreed to terminate its $ 15.3 million contract with Stride on September 10, 2020.
In that news, Stride common stock fell sharply again, 11.5%, closing at $ 30.55 on September 10, 2020.
Meanwhile, South Carolina’s Beaufort County School District hired Stride to provide virtual learning programs for their students. However, the introduction of the program had to be postponed until the second week of classes. Shortly thereafter, Beaufort County School District board member John Dowling stated that he had lost confidence in Stride’s ability to provide educational solutions to the district and decided to terminate the contract, which happened two days later.
In the news, Stride common stock fell 4.9% to close at $ 27.21 on September 18, 2020.
The complaint, filed on November 19, 2020, alleges that throughout the class period, defendants made materially false and misleading statements and did not disclose material adverse facts about the company’s business, operational and compliance policies. Specifically, the defendants made false and / or misleading statements and failed to disclose to investors that: (i) Stride did not have the technology, infrastructure and expertise to meet the increased demand for virtual and mixed education required by the global pandemic support; (ii) Stride lacked adequate cyberattack protocols and protective measures to prevent its computer system from being deactivated. (iii) Stride was unable to provide teachers, students and parents with the required level of administrative support and training. and (iv) based on the foregoing, Defendants lacked a reasonable basis on which to make positive statements about the Company’s business, operations and prospects and / or lacked adequate basis and omitted facts.
If you have purchased Stride common stock during the class period and suffered a loss, are a long-term shareholder, have information, want to learn more about these claims, or have questions about this announcement or your rights or interests in relation to them, please contact Email Brandon Walker, Melissa Fortunato, or Marion Passmore by emailing firstname.lastname@example.org, by phone at (212) 355-4648, or by completing this contact form. There are no costs or obligations for you.
About Bragar Eagel & Squire, PC:
Bragar Eagel & Squire, PC is a nationally recognized law firm with offices in New York, California and South Carolina. The firm represents individual and institutional investors in commercial, securities, derivatives and other complex litigation in state and federal courts across the country. More information about the company can be found at www.bespc.com. Lawyer advertising. Previous results do not guarantee similar results.
Bragar Eagel & Squire, PC
Brandon Walker, Esq.
Melissa Fortunato, Esq.
Marion Passmore, Esq.