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Oklahoma City, OK (October 11, 2018) – On September 27, 2018, a securities class action lawsuit was filed in the United States District Court for the Northern District of California against Chegg, Inc. (NYSE: CHGG). The complaint alleges violations of federal securities laws, Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5, including allegations of issuing a series of material or false misrepresentations to the market which had the effect of artificially inflating the market price during the Class Period, which is July 30, 2018 through September 25, 2018. More specifically, this litigation was filed because defendants throughout the Class Period made false and/or misleading statements and/or failed to disclose that: (1) Chegg lacked adequate security measures to protect users’ data; (2) Chegg lacked the internal controls and procedures to detect unauthorized access to its systems and to its data; (3) as a result, Chegg would incur additional expenses and litigation risks; and (4) as a result of the foregoing, defendants’ positive statements about Chegg’s business, operations, and prospects were materially false and/or misleading and/or lacked a reasonable basis. When the true details entered the market, the lawsuit claims that investors suffered damages.
On September 25, 2018, Chegg 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.” The Company 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. On this news, shares of Chegg declined over 12%, closing at $28.42 per share on September 26, 2018, on heavy trading volume.
Plaintiff seeks to recover damages on behalf of all Chegg, Inc. shareholders who purchased common stock during the Class Period and are therefore a member of the Class as described above. You may move the Court no later than Monday, November 26, 2018 to serve as a lead plaintiff for the entire Class. However, in order to do so, you must meet certain legal requirements pursuant to the Private Securities Litigation Reform Act of 1995.
If you wish to discuss this action, obtain further information and participate in this or any other securities litigation, or should you have any questions or concerns regarding this notice or preservation of your rights, please contact: Robin Hester at email@example.com