Gallup-McKinley County Schools in New Mexico has filed a lawsuit against Stride, Inc., a virtual education provider, accusing the company of fraud and other misconduct. The complaint alleges that Stride prioritized profits over students' education, particularly affecting Native American students in the district.
The lawsuit, filed in New Mexico's 11th Judicial District Court, claims that Stride inflated enrollment numbers by keeping "ghost students" on the rolls to receive state funding. It also accuses the company of cutting staffing costs by assigning teachers more students than allowed by law and ignoring compliance requirements such as background checks and special education services.
Whistleblower testimony included in the complaint indicates that Stride's finance executives refused to hire additional teachers despite warnings of legal violations. Instead, they allegedly ordered further staff cuts to meet profit targets. Despite admissions from its leadership about these practices, Stride continues to assert legal claims against Gallup-McKinley County Schools.
"This case is about a publicly traded corporation deliberately choosing Wall Street margins over the futures of our children," said Chris Mortensen, President of the GMCS Board. Kevin Mitchell, a board member and Navajo Nation member, said that "Stride diverted taxpayer dollars to inflate its stock value while systematically denying our kids the qualified teachers and special education support they were legally entitled to receive."
The school district's lawsuit seeks compensatory and punitive damages under New Mexico's Unfair Trade Practices Act. It highlights broader concerns about publicly traded education models that prioritize shareholder value over educational resources.
Further details on the GMCS lawsuit can be found at https://www.gmcs.org/page/stride-inc.
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