Problems at K12 Inc. (LRN)

Problems at K12 Inc. (LRN)

K12 Inc. (NYSE: LRN — $1.06 billion), an operator of online public schools, has been pitched as a play on the coronavirus pandemic, and the company is known for its ties to the Trump administration. In reality, K12 is a failing education provider and may be one of the biggest losers of a Biden administration.  

K12 employs teachers and develops curriculum for online charter schools and earns taxpayer dollars when students enroll in its programs. K12 operates primarily in kindergarten through 12th grade and also offers consulting services.

Because the company lacks the traditional costs of a physical public school, K12 can spend money on untraditional expenses like marketing and lobbying, and have leftover profits for shareholders. Skeptics question whether K12’s academic offerings are up to par with traditional schooling.

In 2016, K12’s questionable practices gained national attention after the company announced a $168.5 million settlement with California’s Attorney General: Kamala Har…