SAN FRANCISCO, Jan. 13, 2022 (GLOBE NEWSWIRE) — Hagens Berman urges Chegg, Inc. (NYSE:CHGG) investors with significant losses to submit your losses now. A securities fraud class action has been filed and certain investors may have valuable claims. The firm also encourages persons with knowledge who may be able to assist the firm’s ongoing investigation to contact its attorneys.
Chegg, Inc. (CHGG) Securities Fraud Class Action:
The complaint alleges that Defendants misled investors about the sustainability and sources of Chegg’s growth during the class period.
- Specifically, while touting Chegg’s explosive growth as an inevitable shift in higher education and due to its unique position to impact the future of the higher education ecosystem and its strong brand and momentum, Defendants omitted to disclose that (1) Chegg’s subscriber and revenue growth was a temporary effect of the COVID-19 pandemic, and (2) its subscriber and revenue growth was also due to the facilitation of cheating.
Moreover, while defrauding investors, Chegg insiders dumped over $90 million of their company shares at inflated prices and Chegg raised over $1 billion through public offerings.
The truth emerged on Nov. 1, 2021, when Chegg stunned investors with its disappointing Q3 2021 financial results revealing materially fewer-than-expected enrollments, and the company declined to provide 2022 guidance.
On this news, the price of Chegg stock plummeted nearly 50%, erasing nearly $4.3 billion in market capitalization.
“We’re focused on investors’ losses and proving Chegg lied about the sources and sustainability of its continued growth,” said Reed Kathrein, the Hagens Berman partner leading the investigation.
If you invested in Chegg and have significant losses, or have knowledge that may assist the firm’s investigation, click here to discuss your legal rights with Hagens Berman.
Whistleblowers: Persons with non-public information regarding Chegg should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Reed Kathrein at 844-916-0895 or email CHGG@hbsslaw.com.
About Hagens Berman
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Reed Kathrein, 844-916-0895