NEW YORK, Nov. 19, 2020 (GLOBE NEWSWIRE) -- Lowey Dannenberg P.C., a preeminent law firm in obtaining redress for consumers and investors, has filed a federal securities class action in the Eastern District of Virginia on behalf of its client and all similarly situated investors who purchased or otherwise acquired common stock of K12 Inc. ("K12" or the “Company") (NYSE: LRN) from April 27, 2020 to September 18, 2020, both dates inclusive (the "Class Period").  The class action alleges violations of the federal securities laws.

Headquartered in Herndon, Virginia, K12 is a technology-based education company that provides proprietary and third-party educational curriculum, teacher training, administrative support, information technology support, software systems and services.

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 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.

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; (4) and 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 fell by 7% over the course of two trading days, to close at $37.70 on August 27, 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 fell by 10.5% 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 their contract with K12. On this news, the price of K12 common shares once again fell drastically, by 11.5%, to close at $30.55 on September 10, 2020.

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. On this news, the price of K12’s shares fell 4.9%, to close at $27.21 on September 18, 2020.

If you wish to serve as Lead Plaintiff for the Class, you must file a motion with the Court no later than January 19, 2021.  Any member of the proposed Class may move to serve as the Lead Plaintiff through counsel of their choice.

If you have suffered a net loss from investment in K12’s common stock from April 27, 2020 to September 18, 2020, you may obtain additional information about this lawsuit and your ability to become a Lead Plaintiff, by contacting Christian Levis at clevis@lowey.com or by calling 914-733-7220 or Andrea Farah at afarah@lowey.com or by calling 914-733-7256. The class action is titled Lee v. K12 Inc., No. 20-cv-01419 (E.D. Va.).