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Case Status:    ONGOING    
On or around 12/12/2018 (Ongoing date of last review)

Filing Date: September 27, 2018

According to the Complaint, Chegg, Inc. ("Chegg," or the "Company") is a direct-to-student learning platform that provides educational materials and services to high school and college students.

Plaintiff's law firm issued a press release on September 27, 2018, announcing the lawsuit. According to the press release, 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 fell over 12% to close at $28.42 on September 26, 2018, thereby injuring investors.

The Complaint 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: (1) that the Company lacked adequate security measures to protect users’ data; (2) that the Company lacked the internal controls and procedures to detect unauthorized access to its systems and to its data; (3) that as a result, the Company would incur additional expenses and litigation risks; and (4) that, as a result of the foregoing, Defendants’ positive statements about the Company’s business, operations, and prospects were materially false and/or misleading and/or lacked a reasonable basis.

COMPANY INFORMATION:

Sector: Services
Industry: Schools
Headquarters: United States

SECURITIES INFORMATION:

Ticker Symbol: CHGG
Company Market: New York SE
Market Status: Public (Listed)

About the Company & Securities Data


"Company" information provides the industry and sector classification and headquarters state for the primary company-defendant in the litigation. In general, "Securities" information provides the ticker symbol, market, and market status for the underlying securities at issue in the litigation.

In most cases, the primary company-defendant actually issued the securities that are the subject of the litigation, and the securities information and company information relate to the same entity. In a small subset of cases, however, the primary company-defendant is not the issuer (for example, cases against third party brokers/dealers), and the securities information and company information do not relate to the same entity.
COURT: N.D. California
DOCKET #: 18-CV-05956
JUDGE: Hon. Charles R. Breyer
DATE FILED: 09/27/2018
CLASS PERIOD START: 07/30/2018
CLASS PERIOD END: 09/25/2018
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Glancy Prongay & Murray LLP
    1925 Century Park East, Suite 2100 , Glancy Prongay & Murray LLP, CA 90067
    (310) 201-9150 (310) 432-1495 ·
No Document Title Filing Date
—Reference Complaint Complaint Related Data is not available
—Related District Court Filings Data is not available