Online Educator Defeats Investors’ Pandemic Prep Suit, for Now

Sept. 17, 2021, 7:37 PM

K12 Inc. is free for now of allegations it made misleading statements about whether it was prepared for a pandemic-driven increase in demand, but investors can amend their complaint and try again, a federal judge in Virginia said.

Investors say the technology-based education company failed to tell them it would have problems handling the widespread switch to virtual learning during the coronavirus pandemic. The complaint didn’t sufficiently allege K12, which changed its name to Stride Inc. in 2020, misled them or acted intentionally, the U.S. District Court for the Eastern District of Virginia said.

Most of the challenged statements ...

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