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Case Status:    SETTLED  
—On or around 05/21/2025 (Date of order of final judgment)
Current/Last Presiding Judge:  
Hon. P. Casey Pitts

Filing Date: December 22, 2021

According to the Complaint, Chegg, Inc. is a provider of online research tools, online tutoring services, digital and physical textbook rentals, and other educational resources.

The Complaint alleges that the Defendants made materially false and misleading statements and failed to disclose known adverse facts about Chegg's business, operations, and prospects, including that: (i) Chegg's increase in subscribers, growth, and revenue had been a temporary effect of the COVID-19 pandemic that resulted in remote education for the vast majority of United States students and once the pandemic-related restrictions eased and students returned to campuses nationwide, Chegg's extraordinary growth trends would end; (ii) Chegg's subscriber and revenue growth were largely due to the facilitation of remote education cheating – an unstable business proposition – rather than the strength of its business model or the acumen of its senior executives and directors; and (iii) as a result, the Company's current business metrics and financial prospects were not as strong as it had led the market to believe during the Class Period.

On September 7, 2022, the Court issued an Order appointing Lead Plaintiff and Counsel. Lead Plaintiff filed a consolidated Complaint on December 8. Defendants filed a Motion to Dismiss the consolidated Complaint on February 16, 2023.

On March 4, 2024, the Court issued an Order denying Defendants' Motion to Dismiss.

The parties entered into a Stipulation and Agreement of Settlement on November 5, 2024. The Court granted preliminary approval of the Settlement on December 19. On May 21, 2025, the Court granted final approval of the Settlement, including an award of Attorneys’ Fees and Expenses.

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