What Is the Chegg, Inc. Class Action Lawsuit About?
Bronstein, Gewirtz & Grossman, LLC is investigating potential claims on behalf of purchasers of Chegg, Inc. (“Chegg” or “the Company”) (NASDAQ: CHGG). Investors who purchased Chegg securities are encouraged to obtain additional information and assist the investigation.
The investigation concerns whether Chegg has violated federal securities laws.
On February 6, 2023, after the markets closed, Chegg held a conference call to discuss its results for the fourth quarter of 2022. During the call, an analyst asked Chief Executive Officer Dan Rosensweig whether, as a result of ChatGPT, Chegg was “seeing any impact on [its] business in terms of new subscriber growth or returning subscribers.” Rosensweig responded, “No. Nothing at all that is noticeable. And obviously, we’re going to track it, but we’ve seen nothing.” Then, on April 17, 2024, Chegg announced the launch of CheggMate, a new AI-enhanced learning service build on the most advanced model of ChatGPT (GPT-4). Then, on May 1, 2023, Chegg held a conference call to discuss its results for the first quarter of 2023. On the call, Rosensweig stated that “since March, we saw a significant spike in student interest in ChatGPT. We now believe it’s having an impact on our new customer growth.” On this news, Chegg’s stock price fell $8.52 per share, or 48.41%, to close at $9.08 per share on May 2, 2023.
If you are aware of any facts relating to this investigation or purchased Chegg shares, you can assist this investigation
by contacting the firm. You can also contact Peretz Bronstein or his law clerk and client relations manager, Yael Nathanson of Bronstein, Gewirtz & Grossman, LLC: 212-697-6484.
Bronstein, Gewirtz & Grossman, LLC represents investors in securities fraud class actions and shareholder derivative suits. The firm has recovered hundreds of millions of dollars for investors nationwide. Attorney advertising. Prior results do not guarantee similar outcomes.
How Did Chegg, Inc. Stock React to the Disclosures?
How Is BG&G Representing Investors in Securities Class Actions?
We represent investors in class actions on a contingency fee basis. That means we will ask the court to reimburse us for out-of-pocket expenses and attorneys' fees, usually a percentage of the total recovery, only if we are successful.
Bronstein, Gewirtz & Grossman, LLC is a nationally recognized firm that represents investors in securities fraud class actions and shareholder derivative suits. Our firm has recovered hundreds of millions of dollars for investors nationwide.
“Our practice centers on restoring investor capital and ensuring corporate accountability, which serves to uphold the essential integrity of the marketplace.”