Chegg Securities Class Action Settlement
Chegg · Online education and test-help services · Settlement Reached
About this case
Investors alleged that Chegg, its CEO, Jed York, and other company executives concealed the company's role in helping students cheat on online tests and sold stock at allegedly artificially inflated prices. A federal court granted final approval in May 2025 of a $55 million settlement resolving the class action.
Case overview
- Defendant company
- Chegg
- Product or service
- Online education and test-help services
- Court case number
- 5:21-cv-09953
- Case status
- Settlement Reached
- Lawsuit type
- Securities
- Reported harm
- Misrepresentation
Important dates
- settlement claim
Participation information
Settlement Claim
Persons or entities who purchased or otherwise acquired Chegg common stock between May 5, 2020, and November 1, 2021, inclusive, and were damaged thereby, subject to the settlement’s stated exclusions.
A claimant had to complete and sign the Proof of Claim and Release form, provide claimant and beneficial-owner information, list all relevant Chegg stock holdings, purchases, acquisitions, and sales, attach supporting documentation, and submit the form online through the official settlement website or by mail to Chegg Securities Litigation, c/o A.B. Data, Ltd., P.O. Box 173024, Milwaukee, WI 53217. The filing deadline was March 31, 2025.
- Type
- Settlement Claim
- Status
- Deadline passed
- Total settlement amount
- $55,000,000
- Payout
- Eligible claimants who submitted valid claims receive a pro rata payment from the $55,000,000.00 cash Settlement Fund, after court-approved deductions such as attorneys’ fees, administration costs, taxes, and expenses. The individual payment amount varies and was not fixed in the official materials reviewed.
- Reported proof requirement
- Yes
Sources
- Chegg Securities Class Action Settlement
The Blast ·