NEW YORK, NY / ACCESSWIRE / November 21, 2018 / Pomerantz LLP announces that a class action lawsuit has been filed against Chegg, Inc. ("Chegg" or the "Company") (CHGG) and certain of its officers. The class action, filed in United States District Court, Northern District of California, and indexed under 18-cv-06714, is on behalf of a class consisting of all persons and entities, other than Defendants and their affiliates, who purchased or otherwise, acquired Chegg securities between July 30, 2018 through September 25, 2018, both dates inclusive (the "Class Period"), seeking to recover damages caused by Defendants' violations of the federal securities laws and to pursue remedies under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 (the "Exchange Act") and Rule 10b-5 promulgated thereunder, against the Company and certain of its top officials.
If you are a shareholder who purchased Chegg securities between July 30, 2018, and September 25, 2018, both dates inclusive, you have until November 26, 2018, to ask the Court to appoint you as Lead Plaintiff for the class. A copy of the Complaint can be obtained at www.pomerantzlaw.com. To discuss this action, contact Robert S. Willoughby at firstname.lastname@example.org or 888.476.6529 (or 888.4-POMLAW), toll-free, Ext. 9980. Those who inquire by e-mail are encouraged to include their mailing address, telephone number, and the number of shares purchased.
Chegg is a direct-to-student learning platform that provides educational materials and services to high school and college students.
Throughout the Class Period, Defendants made materially false and misleading statements regarding the Company's business, operational and compliance policies. Specifically, Defendants made false and/or misleading statements and/or failed to disclose that: (i) that Chegg did not maintain sufficient data security measures; (ii) that the Company maintained insufficient internal controls and procedures to data breaches of its systems; (iii) consequently, the Company would become subject to increased expenses and litigation risks; and (iv) as a result, the Company's public statements were materially false and misleading at all relevant times.
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 Pomerantz Firm, with offices in New York, Chicago, Los Angeles, and Paris, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, the Pomerantz Firm pioneered the field of securities class actions. Today, more than 80 years later, the Pomerantz Firm continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomerantzlaw.com
SOURCE: Pomerantz LLP