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Chegg, Inc. (NYSE: CHGG) Investor Securities Class Action Lawsuit 09/27/2018

  • If you purchased shares of Chegg, Inc. (NYSE: CHGG), you may have certain options. Please contact the Shareholders Foundation, Inc.

  • To have your information reviewed for options and to receive notifications about this case, please send an email to mail@shareholdersfoundation.com, or call us at (858) 779-1554.

Lawsuit Overview

Company
Chegg, Inc.
Security
NYSE: CHGG

Case Name
Chegg Shareholder Class Action Lawsuit 09/27/2018
Type of Lawsuit
Shareholder Class Action
Court of Filing
U.S. District Court for the Northern District of California

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Summary

March 29, 2019 - The case was voluntarily dismissed.

September 27, 2018 - An investor in shares of Chegg, Inc. (NYSE: CHGG) filed a lawsuit in the U.S. District Court for the Northern District of California over alleged violations of Federal Securities Laws by Chegg, Inc. in connection with certain allegedly false and misleading statements made between July 30, 2018 and September 25, 2018.

According to the complaint the plaintiff alleges on behalf of purchasers of Chegg, Inc. (NYSE: CHGG) common shares between July 30, 2018 and September 25, 2018, that the defendants violated Federal Securities Laws.

More specifically, the plaintiff claims that between July 30, 2018 and September 25, 2018, the Defendants failed to disclose to investors that the Company lacked adequate security measures to protect users’ data, that the Company lacked the internal controls and procedures to detect unauthorized access to its systems and to its data, that as a result, the Company would incur additional expenses and litigation risks, and that, as a result of the foregoing, Defendants’ positive statements about the Company’s business, operations, and prospects were materially false and/or misleading and/or lacked a reasonable basis.

Santa Clara, CA based Chegg, Inc. operates direct-to-student learning platform that supports students on their journey from high school to college and into their career with tools designed to help them pass their test, pass their class, and save money on required materials. Chegg, Inc. reported that its annual Total Revenue rose from $254.09 million in 2016 to $255.06 million in 2017 and that its Net Loss declined from $42.24 million in 2016 to $20.28 million in 2017.

Shares of Chegg, Inc. (NYSE: CHGG) rose from $4.03 per share in March 2016 to as high as $32.71 per share in August 2018.

On September 25, 2018, Chegg, Inc. reported that it had “learned that on or around April 29, 2018, an unauthorized party gained access to a Company database that hosts user data for chegg.com and certain of the Company’s family of brands such as EasyBib.” Chegg, Inc. reported that approximately 40 million users’ data, including username, email address, shipping address, and hashed password, could have been obtained and that an investigation into the incident was ongoing.