NEW YORK, Nov. 20, 2020 (GLOBE NEWSWIRE) -- The law firm of Kirby McInerney LLP announces that a class action lawsuit has been filed in the U.S. District Court for the Eastern District of Virginia on behalf of those who acquired K12 Inc . (“K12” or the “Company”) (NYSE: LRN) securities during the period from April 27, 2020 through September 18, 2020 (the “Class Period”). Investors have until January 19, 2021 to apply to the Court to be appointed as lead plaintiff in the lawsuit.
The Complaint alleges that K12 made false and misleading statements to the public throughout the Class Period and failed to disclose 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) K12’s officers lacked a reasonable basis for their positive statements about the Company’s business, operations, and prospects.
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. On this news, K12’s shares declined by $4.40 (or 10.1%) to close at $39.17 on August 26, 2020.
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. On this news, the price of K12 shares declined by $1.66 (or 4.5%) to close at $34.89 on September 3, 2020.
On September 10, 2020, the Miami-Dade County Public School’s Board voted to terminate their contract with K12. On this news, the price of K12 common shares declined by $3.21 (or 11.5%) to close at $30.55 on September 10, 2020.
If you acquired K12 securities, have information, or would like to learn more about these claims, please contact Thomas W. Elrod of Kirby McInerney at 212-371-6600, by email at email@example.com, or by filling out this contact form, to discuss your rights or interests with respect to these matters without any cost to you.
Kirby McInerney is a New York-based plaintiffs’ law firm concentrating in securities, antitrust, and whistleblower litigation. The firm’s efforts on behalf of shareholders in securities litigation have resulted in recoveries totaling billions of dollars. Additional information about the firm can be found at Kirby McInerney’s website: www.kmllp.com.
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