BENSALEM, Pa.--(BUSINESS WIRE)--Law Offices of Howard G. Smith announces an investigation on behalf of Stride, Inc. (“Stride” or the “Company”) (NYSE: LRN) investors concerning the Company’s possible violations of federal securities laws.
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, Stride’s stock price fell $6.55, or 9.3%, to close at $64.04 per share on October 16, 2024, thereby injuring investors.
If you purchased Stride securities, have information or would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Howard G. Smith, Esquire, of Law Offices of Howard G. Smith, 3070 Bristol Pike, Suite 112, Bensalem, Pennsylvania 19020 by telephone at (215) 638-4847 or by email to howardsmith@howardsmithlaw.com, or visit our website at www.howardsmithlaw.com.
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