Attention investors who purchased shares of Chegg, Inc. between July 30, 2018 and September 25, 2018:
Rigrodsky & Long is investigating claims brought in a securities fraud class action complaint against Chegg, Inc. ("Chegg") concerning whether Chegg and certain of the Company's directors and/or officers made materially false and misleading statements and failed to disclose materially adverse facts during the period July 30, 2018 and September 25, 2018, inclusive (the "Class Period"), concerning Chegg's business, operations and prospects. These misrepresentations and omissions artificially inflated the price of Chegg's stock throughout the Class Period.
Rigrodsky & Long, P.A. announces that a complaint has been filed in the United States District Court for the Northern District of California on behalf of all persons or entities that purchased the common stock of Chegg, Inc. (“Chegg” or the “Company”) (NYSE: CHGG) between July 30, 2018 and September 25, 2018, inclusive (the “Class Period”), alleging violations of the Securities Exchange Act of 1934 against the Company and certain of its officers (the “Complaint”).
If you purchased shares of Chegg during the Class Period, or purchased shares prior to the Class Period and still hold Chegg, and wish to discuss this action or have any questions concerning this notice or your rights or interests, please contact Seth D. Rigrodsky or Timothy J. MacFall at Rigrodsky & Long, P.A., 300 Delaware Avenue, Suite 1220, Wilmington, Delaware 19801, by telephone at (888) 969-4242, or by e-mail at email@example.com.
The Complaint alleges that throughout the Class Period, defendants made materially false and misleading statements, and omitted materially adverse facts, about the Company’s business, operations and prospects. Specifically, the Complaint alleges that the defendants concealed from the investing public that: (1) the Company lacked adequate security measures to protect users’ data; (2) the Company lacked the internal controls and procedures to detect unauthorized access to its systems and to its data; (3) as a result, the Company would incur additional expenses and litigation risks; and (4) 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.. As a result of defendants’ alleged false and misleading statements, the Company’s stock traded at artificially inflated prices during the Class Period.
According to the Complaint, 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.
If you wish to serve as lead plaintiff, you must move the Court no later than November 26, 2018. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. Any member of the proposed class may move the court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member.
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