LEGAL · OCTOBER 2025
Stride Inc. Stock Plummets Over 50% Following Fraud Allegations and Revelation of Major Operational Failures
In October 2025, Stride Inc. faced its most significant public spotlight event of the year, a confluence of damaging news that led to a catastrophic stock price decline. The crisis began with a lawsuit filed in September by the Gallup-McKinley County Schools Board of Education alleging the company inflated enrollment numbers with 'ghost students.' This was compounded by the company's own admission on October 28, 2025, of a failed platform upgrade that resulted in a 'poor customer experience,' higher student withdrawal rates, and 10,000-15,000 fewer enrollments than anticipated, leading to a drastically weakened outlook for fiscal year 2026.