Overview

A class action lawsuit has been filed against KinderCare Learning Companies, Inc. (“KinderCare” or the “Company”) and certain of the Company’s former senior executive officers alleging violations of the federal securities laws. The Company’s common stock trades on the New York Stock Exchange (“NYSE”) under the ticker symbol “KLC.”

The KinderCare class action lawsuit was brought on behalf of all persons and entities who purchased or otherwise acquired KinderCare common stock in or traceable to the Company’s October 2024 initial public offering (the “IPO”), (the “Class Period”).

The lawsuit alleges that KinderCare misled investors by portraying itself as a provider of consistently high-quality and safe childcare, when in reality it had a documented history of serious safety and care failures. In its October 2024 IPO Registration Statement and prospectus, KinderCare described its services as “the highest quality care possible” in a “safe, nurturing and engaging environment.” According to the lawsuit, these statements were false and misleading because the company had experienced numerous incidents of child endangerment, including toddlers wandering into traffic, children being left locked in buses or facilities, and cases of physical, verbal, and sexual abuse.

The allegations also extend to KinderCare’s parent company, Partners Group, which sought to take KinderCare public after acquiring it in 2015. The lawsuit contends that the IPO, which raised $648 million in gross proceeds at $24 per share, was based on an offering document that omitted material risks about the company’s operations and concealed the extent of its deficiencies. Given that more than 30% of KinderCare’s revenues came from federal subsidies, plaintiffs argue that these omissions were particularly significant, as regulatory scrutiny and compliance failures could threaten a key revenue source.

Since the IPO, KinderCare’s stock has performed poorly, dropping from its offering price of $24 per share to lows near $9 per share within less than a year. The lawsuit alleges that this decline was a direct result of the truth about KinderCare’s operations becoming apparent, revealing that the company’s glowing statements about quality and safety were unfounded. As a result, investors who purchased shares in reliance on the company’s public statements suffered significant financial losses.

In sum, the lawsuit asserts that KinderCare and its private equity owner engaged in securities fraud by materially misrepresenting the quality and safety of the company’s services, concealing a troubling operational history, and misleading investors about the risks they faced when purchasing KinderCare stock during the IPO.

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If you purchased or otherwise acquired KinderCare common stock in or traceable to the Company’s October 2024 initial public offering (the “IPO”), and you wish to serve as lead plaintiff in this lawsuit, we encourage you to submit your information to DiCello Levitt LLP via the form on this page. 

You can also contact DiCello Levitt partner Brian O’Mara by calling (888) 287-9005 or at investors@dicellolevitt.com. 

The deadline to apply to the Court to serve as lead plaintiff in the KinderCare class action lawsuit is October 14, 2025.