A securities class action has been filed against KinderCare Learning Companies, Inc. (KLC) on behalf of persons and entities that purchased or otherwise acquired on behalf of all purchasers of KinderCare common stock in or traceable to the Company’s October 9, 2024 initial public offering. This case has been filed in the USDC – OR.
KinderCare provides early education and child care services in the United States. In the IPO, KinderCare sold over 27 million shares of common stock to investors at $24 per share, raising $648 million in gross offering proceeds.
The KinderCare class action lawsuit alleges that the registration statement for the IPO was false and/or misleading and/or failed to disclose that: (i) numerous incidents of child abuse, neglect, and harm had occurred at KinderCare facilities; (ii) KinderCare did not provide the “highest quality care possible” at its facilities, and, indeed, in numerous instances had failed to provide even basic care, meet minimum standards in the child care industry, or comply with the laws and regulations governing the care of children; and (iii) as a result, KinderCare was exposed to a material, undisclosed risk of lawsuits, adverse regulatory action, negative publicity, reputational damage, and business loss.
Since the IPO, the price of KinderCare stock fell to lows near $9 per share.