Scott+Scott Attorneys at Law LLP Alerts Investors That An Action Has Been Filed Against KinderCare Learning Companies, Inc. (NYSE: KLC)
NEW YORK, Sept. 15, 2025 (GLOBE NEWSWIRE) -- Scott+Scott Attorneys at Law LLP (“Scott+Scott”), an international shareholder litigation firm, alerts investors that a securities class action lawsuit has been filed in the United States District Court for the District of Oregon against KinderCare Learning Companies, Inc. (“KinderCare” or the “Company”) (NYSE: KLC), certain of its former and current officers and/or directors, and underwriters (collectively, “Defendants”). The Class Action asserts claims under §§11 and 15 of the Securities Act of 1933 (15 U.S.C. §§77k and 77o) on behalf of all persons other than Defendants who purchased KinderCare common stock in or traceable to the Company’s October 2024 initial public offering (the “IPO”) and were damaged thereby (the “Class”). The Class Action is captioned: Gollapalli v. KinderCare Learning Companies, Inc., et al., Case No. 3:25-cv-01424 (D. Or.).
CLICK HERE TO RECEIVE ADDITIONAL INFORMATION ABOUT THIS POTENTIAL CLASS ACTION
KinderCare provides early education and childcare services in the United States.
The Class Action alleges that 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.
The truth about KinderCare’s misleading registration statement began to emerge on April 3, 2025, when research analyst Edwin Dorsey published a report about KinderCare titled “Problems at KinderCare Learning Companies (KLC)” in The Bear Cave newsletter (the “Report”). The Report provided, among other things, a litany of examples where the Company utterly failed to care for children in its custody. Then, on April 24, 2025, online magazine Evie issued an article titled “Why are Babies Testing Positive For Cocaine At The Nation’s Biggest Daycare Chain?” The article stated the “long list of scandals begs the question: How many isolated incidents does it take before it starts to become a pattern?” Finally, on June 5, 2025, The Bear Cave published a follow-up report that cited calls from lawmakers demanding accountability for KinderCare’s use of federal funding while it is complicit in abuse and poor child safety practices.
On August 12, 2025 (the date the Class Action was filed), the price of KinderCare’s common stock was $9.81, representing a substantial decrease from its $24 IPO price less than a year earlier.
ARE YOU A POTENTIAL CLASS MEMBER ELIGIBLE TO RECOVER? CLICK HERE
If you purchased KinderCare common stock in or traceable to the Company’s October 2024 IPO and were damaged thereby, you are a member of the “Class” and may be able to seek appointment as lead plaintiff.
If you wish to apply to be lead plaintiff, a motion on your behalf must be filed with the U.S. District Court for the District of Oregon no later than October 14, 2025. The lead plaintiff is a court-appointed representative for absent class members of the Class. You do not need to seek appointment as lead plaintiff to share in any Class recovery in the Class Action. If you are a Class member and there is a recovery for the Class, you can share in that recovery as an absent Class member.
If you wish to apply to be lead plaintiff, please contact attorney Mandeep Minhas at (888) 398-9312 or at mminhas@scott-scott.com.
CLICK HERE TO FIND OUT IF YOU CAN RECOVER YOUR LOSSES
About Scott+Scott
Scott+Scott is an international law firm known for its expertise in representing corporate clients, institutional investors, businesses, and individuals harmed by anticompetitive conduct or other forms of wrongdoing, including securities law and shareholder violations. With more than 100 attorneys in eight offices in the United States, as well as three offices in Europe, our advocacy has resulted in significant monetary settlements on behalf of our clients, along with other forms of relief. Our highly experienced attorneys have been recognized for being among the top financial lawyers in 2024 by Lawdragon, WWL: Commercial Litigation 2024, and Legal 500 in Antitrust Civil Litigation, and have received top Chambers 2024 rankings. In addition, we have been repeatedly recognized by the American Antitrust Institute for the successful litigation of high-stakes anticompetitive claims in the United States.
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CONTACT:
Mandeep Minhas
Scott+Scott Attorneys at Law LLP
230 Park Avenue, 24th Floor, New York, NY 10169
(888) 398-9312
mminhas@scott-scott.com
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