LOS ANGELES--(BUSINESS WIRE)--The Law Offices of Frank R. Cruz announces that a class action lawsuit has been filed on behalf of persons and entities that purchased or otherwise acquired K12 Inc. (“K12” or the “Company”) (NYSE: LRN) common shares between April 27, 2020 and September 18, 2020, inclusive (the “Class Period”). K12 investors have until January 19, 2021 to file a lead plaintiff motion.
If you are a shareholder who suffered a loss, click here to participate.
On August 26, 2020, reports surfaced that K12’s training for teachers on its online education platform in Miami-Dade County Public Schools, one of the largest school districts in the country, had been ineffective and “unacceptable.”
On this news, the Company’s stock price fell $5.87, or 13.5%, over the course of two trading days to close at $37.70 on August 27, 2020.
On August 31, 2020, when classes in Miami-Dade started, K12’s platform experienced major technical issues, disruptions, and a series of cyberattacks. During a district Board meeting to discuss the problems with K12’s platform, the district’s superintendent revealed that the district had never executed its $15.3 million contract with K12.
On this news, the price of K12 shares fell by $3.96, or 10.2%, over the course of two trading days, to close at $34.89 on September 3, 2020.
A week later, facing overwhelming complaints from parents and teachers about K12’s platform and curriculum, the Miami-Dade County Public Schools Board voted to terminate its contract with K12.
On this news, the Company’s stock price fell by $3.21, or 9.5%, to close at $30.55 on September 10, 2020.
On September 17, 2020, due to the lack of confidence in K12’s ability to provide educational solutions for the district, the Beaufort County School Board also voted to terminate its contract with K12.
On this news, the Company’s stock price fell $1.09, or 3.9%, to close at $27.21 on September 18, 2020.
The complaint filed alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors 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) as a result, Defendants' statements about its business, operations, and prospects, were materially false and misleading and/or lacked a reasonable basis at all relevant times.
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If you purchased K12 securities during the Class Period, you may move the Court no later than January 19, 2021 to ask the Court to appoint you as lead plaintiff. To be a member of the Class you need not take any action at this time; you may retain counsel of your choice or take no action and remain an absent member of the Class. If you purchased K12 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 Frank R. Cruz, of The Law Offices of Frank R. Cruz, 1999 Avenue of the Stars, Suite 1100, Los Angeles, California 90067 at 310-914-5007, by email to email@example.com, or visit our website at www.frankcruzlaw.com. If you inquire by email please include your mailing address, telephone number, and number of shares purchased.
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