April 5, 2021 - An amended consolidated complaint was filed.

November 19, 2020 - An investor in shares of K12 Inc. (NYSE: LRN) filed a lawsuit in the U.S. District Court for the Eastern District of Virginia over alleged violations of Federal Securities Laws by K12 Inc. in connection with certain allegedly false and misleading statements made between April 27, 2020 to September 18, 2020.

Herndon, VA based K12 Inc., a technology-based education company, provides proprietary and third-party online curriculum, software systems, and educational services to facilitate individualized learning for students primarily in kindergarten through 12th grade (K-12) in the United States and internationally. Due to the global pandemic, school districts across the country were forced to cancel in-person classes and shift to online and blended learning. K12 Inc. stood to benefit from this shift and embarked on a campaign to portray itself as technologically capable and well-positioned to take advantage of this massive transfer to online instruction.

On August 26, 2020, reports emerged that K12’s training for teachers in Miami-Dade County Public Schools, one of the largest school districts in the country, had been ineffective and unacceptable. When classes in Miami-Dade started on August 31, 2020, K12’s platform experienced major technical issues, disruptions, and a series of cyberattacks. In response, the district’s superintendent revealed that the district had never executed its $15.3 million contract with K12. 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 their contract with K12. Other school districts also discovered K12’s inability to deliver on its promises. On September 17, 2020, following a loss 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. Shares of K12 Inc. (NYSE: LRN) declined from $52.84 per share on August 5, 2020, to as low as $20.89 per share on November 10, 2020.

According to the complaint the plaintiff alleges on behalf of purchasers of K12 Inc. (NYSE: LRN) common shares between April 27, 2020 to September 18, 2020, that the defendants violated Federal Securities Laws.

More specifically, the plaintiff claims that between April 27, 2020 to September 18, 2020, K12 made false and misleading statements to the public and failed to disclose that K12 lacked the technological capabilities, infrastructure, and expertise to support the increased demand for virtual and blended education necessitated by the global pandemic, that K12 lacked adequate cyberattack protocols and protections to prevent the disabling of its computer systems, that K12 was unable to provide the necessary levels of administrative support and training to teachers, students, and parents, and that K12’s officers lacked a reasonable basis for their positive statements about the Company’s business, operations, and prospects.