Chegg, Inc.

Chegg, Inc.

Ticker: CHGG

Class Period Start: 05/05/2020

Class Period End: 11/01/2021

Registration Deadline: 02/22/2022

Chegg, Inc. (“Chegg” or the “Company”) provides digital educational platforms for students in high school and college.

On November 1, 2021, Chegg released its financial results for the first quarter in which students had returned to campuses after an extended period of remote education due to the COVID-19 pandemic. Chegg announced fewer-than-expected enrollments and did not provide fiscal 2022 guidance. Chegg’s CEO and president admitted to being aware of subscription slowdown as early as September 2021.

On this news, Chegg’s stock price fell $30.64, or 48.8%, to close at $32.12 per share on November 2, 2021.

A securities class action has been filed against Chegg on behalf of shareholders that purchased Chegg shares between May 5, 2020 and November 1, 2021.  This case has been filed in the U.S. District Court for the Northern District of California.

The Complaint alleges that defendants made materially false and misleading statements and failed to disclose known adverse facts about Chegg’s business, operations, and prospects, including that: (i) 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 United States students and once the pandemic-related restrictions eased and students returned to campuses nationwide, Chegg’s extraordinary growth trends would end; (ii) Chegg’s subscriber and revenue growth were largely due to the facilitation of remote education cheating – an unstable business proposition – rather than the strength of its business model or the acumen of its senior executives and directors; and (iii) as a result, the Company’s current business metrics and financial prospects were not as strong as it had led the market to believe during the Class Period.

If you suffered a loss on your investments or would like to inquire about joining an action to recover your loss under the federal securities laws, please complete the form below.

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