GlobeNewswire Inc | Jan 5, 2021 04:57PM EST

January 05, 2021

NEW YORK, Jan. 05, 2021 (GLOBE NEWSWIRE) -- The law firm of Kirby McInerney LLP 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 those who acquired K12 Inc. (n/k/a Stride, Inc.) (K12 or the Company) (NYSE: LRN) securities during the period from April 27, 2020 through September 18, 2020 (the Class Period). Investors have until January 19, 2021 to apply to the Court to be appointed as lead plaintiff in the lawsuit.

The lawsuit alleges that K12 made false and misleading statements to the public throughout the Class Period and failed to disclose that: (1) K12 lacked the technological capabilities, infrastructure, and expertise to support the increased demand for virtual and blended education necessitated by the global pandemic; (2) K12 lacked adequate cyberattack protocols and protections to prevent the disabling of its computer systems; (3) K12 was unable to provide the necessary levels of administrative support and training to teachers, students, and parents; and (4) K12s officers lacked a reasonable basis for their positive statements about the Companys business, operations, and prospects.

On August 26, 2020, reports emerged that K12s training for teachers in Miami-Dade County Public Schools, one of the largest school districts in the country, had been ineffective and unacceptable. On this news, K12s stock price fell $4.40 per share, or approximately 10.1%, from $43.57 per share to close at $39.17 per share on August 26, 2020.

When classes in Miami-Dade started on August 31, 2020, K12s platform experienced major technical issues, disruptions, and a series of cyberattacks. In response, the districts superintendent revealed that the district had never executed its $15.3 million contract with K12. On this news, the price of K12 stock price fell $2.32 per share, or approximately 6.2%, over the course of two trading days from $37.21 per share to close at $34.89 per share on September 3, 2020.

On September 10, 2020, the Miami-Dade County Public Schools Board voted to terminate their contract with K12. On this news, the price of K12s stock price fell $3.21 per share, or approximately 9.5%, from $33.76 per share to close at $30.55 per share on September 10, 2020.

Other school districts also discovered K12s inability to deliver on its promises. On September 17, 2020, following a loss of confidence in K12s ability to provide educational solutions for the district, the Beaufort County School Board (South Carolina) also voted to terminate its contract with K12. On this news, the price of K12s stock price fell $1.09 per share, or approximately 3.9%, from $28.30 per share to close at $27.21 per share on September 18, 2020.

If you acquired K12 securities, have information, or would like to learn more about these claims, please contact Thomas W. Elrod of Kirby McInerney at 212-371-6600, by email at investigations@kmllp.com, or by filling out this contact form, to discuss your rights or interests with respect to these matters without any cost to you.

Kirby McInerney is a New York-based plaintiffs law firm concentrating in securities, antitrust, and whistleblower litigation. The firms efforts on behalf of shareholders in securities litigation have resulted in recoveries totaling billions of dollars. Additional information about the firm can be found at Kirby McInerneys website: www.kmllp.com.

This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.

Contacts

Kirby McInerney LLPThomas W. Elrod, Esq., (212) 371-6600investigations@kmllp.comwww.kmllp.com