Company: Chegg, Inc.
Class Period: July 30, 2018 — September 25, 2018
Court: U.S.D.C. – Northern District of California
Deadline: November 26, 2018
Kaskela Law LLC announces that an investor class action lawsuit has been filed against Chegg, Inc. (NYSE: CHGG) (“Chegg” or the “Company”) on behalf of purchasers of the Company’s securities between July 30, 2018 and September 25, 2018, inclusive (the “Class Period”).
Chegg is a direct-to-student learning platform that provides educational materials and services to high school and college students.
On September 25, 2018, the Company reported that an unauthorized party had gained access on or around April 29, 2018 to approximately 40 million users’ data, including username, email address, shipping address, and hashed Chegg password. On this news, the Company’s share price fell $3.91, or approximately 12%, to close at $28.42 per share on September 26, 2018, on unusually heavy trading volume.
The investor class action complaint alleges that defendants violated the federal securities laws during the Class Period by making false and misleading statements and failing to disclose to investors that: (i) the Company lacked adequate security measures to protect users’ data; (ii) the Company lacked the internal controls and procedures to detect unauthorized access to its systems and to its data; and (iii) as a result, the Company would incur additional expenses and litigation risks. The complaint further alleges that, as a result of the foregoing, investors purchased Chegg’s securities at artificially inflated values during the Class Period, and have suffered financial damages as a result of defendants’ actions.
IMPORTANT DEADLINE: Investors who purchased Chegg’s securities during the Class Period and suffered financial losses may, no later than November 26, 2018, seek to be appointed as a lead plaintiff representative of the investor class.
Chegg investors with financial losses in excess of $50,000 are encouraged to contact Kaskela Law LLC to discuss this action and their legal rights and options and/or complete the information form on this page.