Stride Investors End Metrics, Management Lawsuit Against Leaders

Two Stride Inc. investors are dropping their suit against the online educator’s board and top executives over student metrics, staffing, and sales.

No settlement is involved, and the claims—brought on behalf of the company—can be refiled, David Murphy and Ryan Clepper told the US District Court for the Eastern District of Virginia in a filing Tuesday.

• The pair alleged in their derivative suit that leadership touted Stride’s enrollment strength and growth potential while concealing that it enrolled nonexistent, or “ghost,” students and cut corners on staffing and background checks
• A proposed class action over a 54% stock drop, with similar ...