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KinderCare Lawsuit Filed for Violations of Federal Securities Laws
ByAinvest
Monday, Sep 22, 2025 5:13 am ET1min read
KinderCare Learning Companies is facing a class action lawsuit alleging violations of federal securities laws. The lawsuit claims the company made false and misleading statements about providing high-quality care for children, despite failing to comply with laws and regulations. Shareholders who purchased KinderCare shares during the IPO in October 2024 are encouraged to contact the DJS Law Group regarding possible lead plaintiff appointments. The deadline for participation is October 14, 2025.
KinderCare Learning Companies, Inc. (NYSE: KLC) is facing a class action lawsuit alleging violations of federal securities laws. The lawsuit, filed in the United States District Court for the District of Oregon, claims that the company made false and misleading statements about providing high-quality care for children, despite failing to comply with laws and regulations.The class action, captioned Gollapalli v. KinderCare Learning Companies, Inc., et al., Case No. 3:25-cv-01424, was filed on August 12, 2025. The lawsuit alleges that the company's registration statement for its initial public offering (IPO) in October 2024 was false and/or misleading, failing to disclose numerous incidents of child abuse, neglect, and harm at KinderCare facilities. Additionally, the company was accused of not providing the "highest quality care possible" and failing to meet minimum standards in the child care industry or comply with relevant laws and regulations.
The lawsuit also alleges that KinderCare was exposed to material, undisclosed risks of lawsuits, adverse regulatory action, negative publicity, reputational damage, and business loss as a result of these failures. The company's stock price has significantly decreased since the IPO, from $24 to $9.81 on August 12, 2025, reflecting the potential impact of these allegations.
Shareholders who purchased KinderCare shares during the IPO are encouraged to contact the DJS Law Group regarding possible lead plaintiff appointments. The deadline for participation is October 14, 2025. The DJS Law Group, a prominent securities law firm, specializes in representing investors in class action lawsuits and has a proven track record in securities litigation.
The lawsuit is the latest in a series of allegations against KinderCare, with reports emerging in April and June 2025 highlighting incidents of poor care and potential misuse of federal funding. Despite these allegations, KinderCare continues to operate and provide early education and childcare services in the United States.
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