KLC Investor Update: Class Action Lawsuit Filed Against KinderCare Over IPO– Hagens Berman

SAN FRANCISCO, Aug. 21, 2025 (GLOBE NEWSWIRE) -- A securities class action lawsuit has been filed on behalf of investors who purchased shares in KinderCare (NYSE: KLC) during its October 2024 initial public offering (IPO). The lawsuit alleges that the company made false and misleading statements in its IPO documents, failing to disclose significant risks related to the quality and safety of its childcare services.

Hagens Berman urges KinderCare investors who suffered substantial losses to submit your losses now.

Class Period: Purchasers in KinderCare October 2024 IPO
Lead Plaintiff Deadline: Oct. 14, 2025
Visit: www.hbsslaw.com/investor-fraud/klc
Contact the Firm Now: KLC@hbsslaw.com
                                         844-916-0895

Lawsuit Allegations:

The complaint claims that KinderCare's offering documents misled investors by portraying its services as consistently "high-quality" and a "safe, nurturing and engaging environment." These statements were allegedly false because the company failed to disclose numerous incidents of child abuse, neglect, and harm at its facilities.

• Undisclosed Risks: The lawsuit asserts that KinderCare did not provide the "highest quality of care possible" and, in many cases, failed to meet basic standards and comply with regulations. This exposed the company to material, undisclosed risks of lawsuits, regulatory actions, and reputational damage.
• Analyst Reports: The lawsuit cites research reports from analyst Edwin Dorsey of The Bear Cave, published on April 3, 2025, and June 5, 2025. These reports detailed incidents of child endangerment and abuse at KinderCare facilities, and noted growing lawmaker scrutiny.

The revelations in these reports and other developments have driven the price of KinderCare shares well below the initial $24 IPO price. The company has also reported disappointing financial results since going public, citing declining enrollment.

Hagens Berman’s Investigation

A national plaintiffs’ rights law firm, Hagens Berman, is investigating these claims on behalf of investors who suffered substantial losses. The firm is also encouraging anyone with knowledge of the matter to contact its attorneys.

“We are deeply concerned about the allegations of abuse and neglect at KinderCare’s facilities, and their alleged link to the company’s financial performance since the IPO," said Reed Kathrein, the Hagens Berman partner leading the investigation. “We’re focusing on whether KinderCare’s offering documents presented a misleading picture of a company with ‘unwavering’ quality, while concealing a pattern of safety failures that has since put its reputation and business model at risk. Investors deserve to know the full truth behind what they were sold.”

If you invested in KinderCare and have substantial losses, or have knowledge that may assist the firm’s investigation, submit your losses now »

If you’d like more information and answers to frequently asked questions about the KinderCare case and our investigation, read more »

Whistleblowers: Persons with non-public information regarding KinderCare should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Reed Kathrein at 844-916-0895 or email KLC@hbsslaw.com.

About Hagens Berman
Hagens Berman is a global plaintiffs’ rights complex litigation firm focusing on corporate accountability. The firm is home to a robust practice and represents investors as well as whistleblowers, workers, consumers and others in cases achieving real results for those harmed by corporate negligence and other wrongdoings. Hagens Berman’s team has secured more than $2.9 billion in this area of law. More about the firm and its successes can be found at hbsslaw.com. Follow the firm for updates and news at @ClassActionLaw.

Contact:
Reed Kathrein, 844-916-0895

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