The Law Offices of Frank R. Cruz Announces the Filing of a Securities Class Action on Behalf of Chegg, Inc. (CHGG) Investors

LOS ANGELES--(BUSINESS WIRE)--The Law Offices of Frank R. Cruz announces that a class action lawsuit has been filed on behalf of persons and entities that purchased or otherwise acquired Chegg, Inc. (“Chegg” or the “Company”) (NYSE: CHGG) common stock between May 5, 2020 and November 1, 2021, inclusive (the “Class Period”). Chegg investors have until February 22, 2022 to file a lead plaintiff motion.

If you are a shareholder who suffered a loss, click here to participate.

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 the slowdown in 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, thereby injuring investors.

The complaint filed in this class action alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, 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 United States 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 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 (3) as a result, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis at all relevant times.

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If you purchased Chegg securities during the Class Period, you may move the Court no later than February 22, 2022 to ask the Court to appoint you as lead plaintiff. To be a member of the Class you need not take any action at this time; you may retain counsel of your choice or take no action and remain an absent member of the Class. If you purchased Chegg securities, have information or would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Frank R. Cruz, of The Law Offices of Frank R. Cruz, 1999 Avenue of the Stars, Suite 1100, Los Angeles, California 90067 at 310-914-5007, by email to [e-mail], or visit our website at www.frankcruzlaw.com. If you inquire by email please include your mailing address, telephone number, and number of shares purchased.

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