San Diego, CA -- (SBWIRE) -- 01/20/2022 -- An investor, who purchased NYSE: CHGG shares, filed a lawsuit against Chegg, Inc over alleged Securities Laws violations.

Investors who purchased shares of Chegg, Inc. (NYSE: CHGG) have certain options and for certain investors are short and strict deadlines running. Deadline: February 22, 2022. NYSE: CHGG investors should contact the Shareholders Foundation at mail@shareholdersfoundation.com or call +1(858) 779 - 1554.

Santa Clara, CA based Chegg, Inc. operates direct-to-student learning platform that supports students on their journey from high school to college and into their career with tools designed to help them to learn their course materials, succeed in their classes, and save money on required materials.

On November 1, 2021, Chegg, Inc. revealed its financial results for the first quarter in which students returned to campus across the United States, revealing fewer-than-expected enrollments while failing to provide 2022 guidance. In fact, Chegg's CEO and President, defendant Daniel L. Rosensweig, admitted that defendants were aware of the slowdown in September 2021. On this news, Chegg's stock price fell by nearly 50%, damaging investors.

Shares of Chegg, Inc. (NYSE: CHGG) declined from $115.21 per share on February 16, 2021, to as low as $24.86 per share on November 23, 2021.

The plaintiff claims that between May 5, 2020 and November 1, 2021, the defendants made false and misleading statements and failed to disclose that 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 U.S. students and once the pandemic-related restrictions eased and students returned to campuses nationwide, Chegg's extraordinary growth trends would end, that Chegg's subscriber and revenue growth were largely due to the facilitation of cheating – an unstable business proposition – rather than the strength of its business model or the acumen of its senior executives and directors, and that as a result, Chegg's current business metrics and financial prospects were not as strong as it had led the market to believe between May 5, 2020 and November 1, 2021.

Those who purchased shares of Chegg, Inc. (NYSE: CHGG) have certain options and should contact the Shareholders Foundation.

Contact:
Shareholders Foundation, Inc.
Michael Daniels
3111 Camino Del Rio North - Suite 423
92108 San Diego
Phone: +1-(858)-779-1554
Fax: +1-(858)-605-5739
mail@shareholdersfoundation.com

About Shareholders Foundation, Inc.
The Shareholders Foundation, Inc. is a professional portfolio monitoring and settlement claim filing service, , which does research related to shareholder issues and informs investors of securities class actions, settlements, judgments, and other legal related news to the stock/financial market. Shareholders Foundation, Inc. is in contact with a large number of shareholders and offers help, support, and assistance for every shareholder. The Shareholders Foundation, Inc. is not a law firm. Referenced cases, investigation, and/or settlements are not filed/reached and/or related to Shareholders Foundation. The information is provided as a public service. It is not intended as legal advice and should not be relied upon.