| COMPANY |
Chegg, Inc. |
| COURT |
United States District Court for the Northern District of California |
| CASE NUMBER |
21-cv-09953 |
| JUDGE |
The Honorable P. Casey Pitts |
| CLASS PERIOD |
May 5, 2020 - November 1, 2021 |
| SECURITY TYPE |
Common Stock |
Case Background:
The complaint alleges that the defendants touted that Chegg was “in a unique position to impact the future of the higher education ecosystem” and that the primary cause of Chegg’s success was its “strong brand and momentum” which would allow Chegg “to continue to grow and take advantage of the ever-expanding opportunities in the learner economy.”
The complaint further alleges that with the market price of Chegg stock artificially inflated, several of Chegg’s senior officers and directors cashed-in, selling more than $90 million of their personally-held shares.
The complaint alleges that throughout the Class Period, the defendants failed to disclose to investors that: (1) Chegg’s increase in subscribers, growth, and revenue had been a temporary effect of the COVID-19 pandemic that resulted in remote education for the vast majority of U.S. students and once the pandemic-related restrictions eased and students returned to campuses nationwide, Chegg’s extraordinary growth trends would end; (2) Chegg’s subscriber and revenue growth were largely due to the facilitation of cheating – an unstable business proposition – rather than the strength of its business model or the acumen of its senior executives and directors; and (3) as a result, Chegg’s current business metrics and financial prospects were not as strong as it had led the market to believe.
Current Status of Case:
On November 6, 2024, Lead Plaintiff filed a Motion for Preliminary Approval of Settlement. The Court entered an Order on December 19, 2024, granting the Motion for Preliminary Approval of Settlement and scheduled a Settlement Hearing on April 24, 2025. This action is ongoing.
The deadline to file a claim is March 31, 2025. If you have any questions or need further information about this settlement, you may go to the following website: www.CheggSecuritiesLitigation.com, or you can contact the claims administrator, A.B. Data, Ltd., at 1-877-884-2550.
If you wish to discuss this action or have any questions concerning this notice or your rights or interests with respect to these matters, please contact Kessler Topaz Meltzer & Check, LLP: Jonathan Naji, Esq. (484) 270-1453 or via e-mail at info@ktmc.com. If you would like additional information about the suit, please click on the link "Submit Your Information" above and fill out the form as promptly as possible.