Sunday, December 21, 2025
ICYMI: Hope You're Ready Edition (12/21)
Saturday, December 20, 2025
Stride Sued For Securities Fraud
* Graduation rates in GMCS's Stride-managed online program plunged from 55.79% in 2022 to just 27.67% in 2024.
* Student turnover reached an alarming 30%.
* New Mexico state math proficiency scores for Stride students dropped dramatically, falling to just 5.6%.
* Ghost enrollments and a lack of individualized instruction further compromised student learning.
At the special May 16 board meeting to terminate the contract, the board was feeling pretty cranky.
The district said that the company is failing to meet requirements outlined in their contract. “This is something we’ve literally been working on since the beginning of the year with stride, and we just finally had a belly full of it and we’re ready to make a change,” said Chris Mortensen, President of Gallup-McKinley Schools Board of EducationThe board voted unanimously not just to end the contract, but to seek damages. Stride filed a motion for a restraining order to keep the board from firing them. The court said no.
Mortenson has had plenty to say about the situation. From the district's press release:
GMCS School Board President Chris Mortensen stated, "Our students deserve educational providers that prioritize their academic success, not corporate profit margins. Putting profits above kids was damaging to our students, and we refuse to be complicit in that failure any longer."
Stride CEO James Rhyu has admitted to failing to meet New Mexico's legal requirements for teacher-student ratios, an issue that GMCS suspects was not isolated. "We have reason to believe that Stride has raised student-teacher ratios not just in New Mexico but nationwide," said Mortensen. "If true, this could have inflated Stride's annual profit margins by hundreds of millions of dollars. That would mean corporate revenues and stock prices benefited at the expense of students and in some cases, in defiance of the law."
"Gallup-McKinley County Schools students were used to prop up Stride's bottom line," said Mortensen. "This district, like many others, trusted Stride to deliver education. Instead, we got negligence cloaked in corporate branding."
Stride appears to have dealt with all this by mounting a PR campaign to smear the district's superintendent.
But you'll notice the charges that Mortensen leveled against the company go beyond a simple "They cheated us" and went all the way to "They are cheating their shareholders." And apparently somebody heard that message.
The Newest Lawsuit
On November 11, Bleichmar Fonti & Auld LLP filed a class action lawsuit against Stride, Inc. (NYSE: LRN) and senior executives Donna Blackman (CFO) and James Rhyu (CEO) for securities fraud after significant stock drops resulting from the potential violations of the federal securities laws. Investors have until January 12, 2026 to ask the court to be added onto the case. The suit was filed in the Virginia Eastern District Court.The suit appears to charge that the complaint filed by the district caused the stock value to drop from a closing price of $158.36 per share on September 12, 2025, to $139.76 per share on September 15, 2025. Then in October, Stride had to fess up that “poor customer experience” resulted in “higher withdrawal rates,” “lower conversion rates,” and drove students away. Stride estimated they had 10,000-15,000 fewer enrollments and predicted a "muted" outlook. That led to a drop of $83.48 per share-- more than half the value.
So, in short, the suit argues that Stride got its great investment results by cheating at its business, and once it got caught cheating, those great investment results went down the toilet. The business fraud facilitated the securities fraud. Folks invested because of claims the company could do a thing when it was just faking doing the thing. Fraud.
Is This a New Problem for Stride?
Are you kidding? Since Stride was founded as K12, they haven't gone a year without some sort of legal problems.
Stride used to be K-12, a for-profit company aimed at providing on-line and blended learning. It was founded in 2000 by Ron Packard, former banker and Mckinsey consultant, and quickly became the leading national company for cyber schooling.One of its first big investors was Michal Milken. That investment came a decade after he pled guilty to six felonies in the “biggest fraud case in the securities industry” ending his reign as the “junk bond king.” Milken was sentenced to ten years, served two, and was barred from ever securities investment. In 1996, he had established Knowledge Universe, an organization he created with his brother Lowell and Larry Ellison, who both kicked in money for K12.
Also investing in K12, very quietly, was the financial giant Blackrock, founded and run by Larry Fink. Larry graduated from the same high school as Milken. Larry's brother Steve is a member of the Stride board, and at one point ran the division of Knowledge Universe. Larry Fink is noted for his privacy about family, and a search for the two brothers’ names turns up only one article— a Forbes piece from 2000 which notes that Steve Fink, in 1984, moved next door to Micheal Milken and went on to become “one of Milken’s most trusted confidants,” a “guy he’s relied on to fix business trouble.”
In 2011, the New York Times detailed how K12's schools were failing miserably, but still making investors and officers a ton of money. Former teachers wrote tell-alls about their experiences. In 2012. Florida caught them using fake teachers. The NCAA put K12 schools on the list of cyber schools that were disqualified from sports eligibility. In 2014, Packard turned out to be one of the highest paid public workers in the country, "despite the fact that only 28% of K12 schools met state standards in 2011-2012."
In 2013 K12 settled a class action lawsuit in Virginia for $6.75 million after stockholders accused the company of misleading them about “the company’s business practices and academic performance.” In 2014, Middlebury College faculty voted to end a partnership with K12 saying the company’s business practices “are at odds with the integrity, reputation and educational mission of the college.”
Packard was himself sued for misleading investors with overly positive public statements, and then selling 43% of his own K12 stock ahead of a bad news-fueled stock dip. Shortly thereafter, in 2014, he stepped down from leading K12 to start a new enterprise.
In 2016 K12 got in yet another round of trouble in California for lying about student enrollment, resulting in a $165 million settlement with then Attorney General Kamala Harris. K12 was repeatedly dropped in some states and cities for poor performance.
In 2020, they landed a big contract in Miami-Dade county (after a big lucrative contribution to an organization run by the superintendent); subsequently Wired magazine wrote a story about their "epic series of tech errors." K12 successfully defended itself from a lawsuit in Virginia based on charges they had greatly overstated their technological capabilities by arguing that such claims were simply advertising “puffery.”
In November of 2021, K12 announced that it would rebrand itself as Stride.
The New York Times had quoted Packard as calling lobbying a “core competency” of the company, and the company has spread plenty of money around doing just that. And despite all its troubles, Stride was still beloved on Wall Street for its ability to make money.
In 2023, Stride found itself wrapped up in a lawsuit with one of its own division over broken promises and attempts to lie their way out of commitment.
In 2024, analysts at Fuzzy Panda were warning investors away from Stride, saying that, among other things, Stride was lying to investors about how many schools were operating and ghost students being used to inflate enrollment numbers-- in other words, these guys absolutely called it. Later that year, Senator and noted MAGA doofus Markwayne Mullin was in trouble for shenanigans with his Stride stock.
Q: Mr. Rhyu, are you a man of your word?
Rhyu: I’m not sure I understand that question.
Q: Do you do what you say you are going to do, sir?
Rhyu: Under what circumstances?
Q: Do you do what you say you are going to do, Mr. Rhyu?
Rhyu: That’s such a broad question. It’s hard for me to answer.
Is it? Is that a hard question to answer? Because I feel as if even a dishonest-but-correct answer isn't hard to concoct. But that's Rhyu (for a more detailed story of his slipperiness in action, read this).
For Stride, Education Really Isn't the Point
Stride has never really been in the education business. Stride is in the investment business. Just look at the people who founded and have run it-- not an educator in the bunch, but plenty of high-powered and/or shady investment guys. I've talked to more than a few Stride teachers (none of whom want to go on the record) and the picture that emerges is over-worked widgets whose main job is to keep the numbers looking good, because student "success" is an important part of marketing, whether that success is real or not.
So if investors manage to claw back some of their money, I guess that's fine. Stride has proven remarkably resilient when called out on its misbehavior. I suppose a laser-like focus on its main business helps, but we should never imagine that that business is education.
Thursday, December 18, 2025
OK: Court Axes Social Studies Standards
After Ryan Walters decided to officially leave the job he hardly ever showed up for in order to take a cushy anti-teacher union job, leaders in Oklahoma decided that maybe they would like to have someone leading the department of education who was actually interested in, you know, education.
Asked after the meeting why Walters did not at least notify board members of what changed between the initial version of the standards and the final version, Walters declined to give a reason besides saying he made it clear to board members that the version of the standards given to them less than 24 hours before the meeting was the updated and final version.
“I don’t control when Gov. (Kevin) Stitt put these board members on here. That’s what he chose to do,” Walters said. “It was at the very end of the process.”
The court was unimpressed by this passive-aggressive hissy fit. Making last minute changes without notifying the board, especially when those changes result in final document that is substantially different from the document released to the public-- not a winning strategy.
So the Christian [sic] Nationalist standards are out, and Oklahoma will go back to the standards adopted in 2019.
And who knows-- maybe the state will eventually finish cleaning up after Walters. Meanwhile, his new anti-union union has enrolled almost 7,000 teachers-- which is not exactly a whopping slice of the 4 million-ish teachers working in this country.
Wednesday, December 17, 2025
Parental Roll of the Dice
So, what we have learned in the last twenty years of research in neuroimaging, behavior genetics, developmental psychology, neuropsychology, can be boiled down to this phrase:
Your child is born with more than 400 psychological traits that will emerge as they mature, and they have nothing to do with you.
So the idea that you are going to engineer personalities and IQs and academic achievement skills and all these other things just isn't true.
Your child is not a blank slate on which you get to write.
Barkley suggests that parents think of themselves not as engineers, but as shepherds.
You are a shepherd. You don't design the sheep. The engineering view makes you responsible for everything--everything that goes right and everything that goes wrong. This is why parents come to us with such guilt. More guilt than we've ever seen in prior generations. Because parents today believe that it's all about them, and what they do, and if they don't get it right, or if their child has a disability, they've done something wrong when in fact the opposite is true. This has nothing to do with your particular brand of parenting.
So I would rather you would stop thinking of yourself as an engineer, and step back and say "I am a shepherd to a unique individual." Shepherds are powerful people. They pick the pastures in which the sheep will graze and develop and grow. They determine whether they're appropriately nourished. They determine whether they're protected from harm. The environment is important but it doesn't design the sheep. No shepherd is going to turn a sheep into a dog. Ain't gonna happen. And yet that is what we see parents trying to do, all the time.
And sometimes, for reasons that nobody could have predicted or controlled, the sheep run out of the pasture and get in trouble-- maybe a little bit, or maybe a whole lot.
Three things to remember, I think.
First, beware of guilt and blame. Parents blame themselves. Others blame them. Okay, sometimes the guilt is earned. But if you are manufacturing guilt, particularly based on some hypothetical alternate universe in which the parent said or did a magic something that Fixed Everything-- maybe a little grace is in order.
Second, remember that sometimes a dark chapter is not the end of the book. As long as it's possible to move forward, there is hope. Some people find their way out of the weeds, sometimes with help and sometimes on their own. The real tragedy comes when they do something unredeemable; until that happens (and sometimes even after), there is still hope.
Third, beware any person or system that claims that we can keep young humans safe by taking total control of their lives, their environment, their contacts. The fundamental argument for authoritarianism is always an appeal to fear, a claim that "If I have total control, I can guarantee that the Terrible Thing will never happen to you." That version of safety is an illusion; jailers do not keep us safer than shepherds.
Sometimes the shepherd just isn't enough, despite all of their best intentions and efforts. Doesn't mean we should stop making out best efforts. But my heart breaks for the parents who did the best they could and still, somehow, lost their child to the dark.
Tuesday, December 16, 2025
Whole Books and Slow School
Monday, December 15, 2025
Zeroing Public Ed
I'm optimistic that, you know, five years from now a majority of kids are going to be in a private school choice program.
The department also picked up two folks from Defending Education, formerly Parents Defending Education. You may have missed that back on April 9, 2025, this astroturf activist anti-public ed group dropped "parents" from its name, which may be the one honest thing they've done since they grabbed a pile of dark money and started harassing public schools across the country under the pretense that they were a group of concerned parents and not a professional political operation.
The department also hired heavily from McMahon's own group-- America First Policy Institute-- which came close to being blunt about their goals in a 2023 paper titled “Biblical Foundations” in which they wrote that "the Bible makes it clear that it is parents alone who shoulder the responsibility for their children.” That's the Friedman ideal-- no collective or societal responsibility to educate children and certainly no such responsibility exercised through government action. It's all on you, parents.
The Department has also partnered with another fresh Heritage hire for Heritage Action, the political action wing-- Tiffany Justice. Justice has dropped the whole "regular mom sitting at the kitchen table baking cookies and running t-shirt sale fundraisers" baloney and embraced her role as a professional political operative. Justice had made it known that she would be delighted to serve as Trump's education secretary. Justice helped launch the DEI tattling site (which only lasted about three months).
It was Justice who gave ProPublica the clearest, most direct quote. They asked her what percentage of children should be in public school:
I hope zero. I hope to get to zero.
So much of what these folks do is best understood through that lens. Even the attempts to inject their religion into public schools can be understood as just an attempt to turn public schools into private religious schools.
It's not about fairness or "rescuing" students from poor schools or the improving power of competition and not even about choice. It's about ending public education, about getting the government out of the business of overseeing and providing education, about ending the theft-by-taxation that forces some folks to pay to educate Those Peoples' Children, about ending a system that keeps True Believers from fully empowering their biased discrimination, and most especially about ending a system that tries to elevate people above their Proper Place in a society that doles out power and privilege only to those who Really Deserve it. And right now these folks are in the halls of power in the United States Department of Education.
Sunday, December 14, 2025
Sandy Hook Etc Etc
And it wasn't.
"No way to prevent this," says only Nation Where This Regularly Happens is the most bitter, repeated headline The Onion has ever published. We're just "helpless."






