The Gallup-McKinley County Schools Board of Education announced in a Sept. 4 press release that they have filed a verified complaint in the 11th Judicial District Court against Stride, Inc. (formerly K12 Virtual Schools) and its senior executives.
The complaint alleges a pattern of fraud, deceptive trade practices, violations of its duties to the school district and its students, and engaging in educational neglect that has harmed thousands of students and defrauded New Mexico taxpayers. All to increase its profits at the expense of students.
The complaint details that Stride:
- Used unlicensed teachers and exceeded statutory student-to-teacher ratios, in some cases with more than 200 students assigned to a single teacher.
- Failed to provide special education services, delayed Individualized Education Plans, and placed students in incorrect testing tracks.
- Kept “ghost students” on the rolls to improperly receive State funding, while failing to report truancy and students without access, as required by law.
- Retaliated against GMCS by launching a disinformation campaign targeting Superintendent Michael Hyatt after being confronted about its systemic violations of law and local policies.
“This is about accountability, plain and simple,” GMCS Board President Chris Mortensen stated in the press release. “For years, Stride put profits ahead of our students. They failed to provide a lawful, quality education, and when we called them out, they tried to smear our district and its leadership. We will not tolerate corporate profiteering at the expense of New Mexico’s children.”
The complaint also includes whistleblower testimony from a Stride employee who confirmed company executives knowingly violated New Mexico education laws to inflate profit margins. Internal calls and emails showed that Stride’s finance department rejected requests to hire needed teachers even after being warned they were out of statutory compliance.
“As a Navajo and as a board member, I see this as a direct attack on our community’s children,” said GMCS Board Member Kevin Mitchell, a citizen of the Navajo Nation. “Our families already face enormous challenges with distance, poverty, and lack of resources. Stride took advantage of that. They pocketed taxpayer money while denying our students the teachers, counselors, and special education services they deserved.”
GMCS formally terminated its agreement with Stride in May after providing the company with multiple opportunities to correct its violations. The Board is now seeking damages, restitution of taxpayer funds, and punitive measures to prevent similar abuses in the future.
“We acted because our children cannot afford another year of broken promises,” Mortensen said. “The lawsuit is not just about Gallup-McKinley—it’s about protecting every student in New Mexico from companies that put Wall Street ahead of classrooms.”
For additional updates, visit http://www.gmcs.org.
