Law Offices of Howard G. Smith announces that a class action lawsuit has been filed on behalf of investors that purchased Chegg Inc. (Chegg or the Company) (NYSE: CHGG) securities between July 30, 2018 and September 25, 2018, inclusive (the Class Period). Chegg investors have until November 26, 2018 to file a lead plaintiff motion.
Investors that suffered losses on their Chegg investments are encouraged to contact the Law Offices of Howard G. Smith to discuss their legal rights in this class action at 888-638-4847 or by email to [email protected].
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 Companys 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 fell over 12% to close at $28.42 on September 26, 2018, thereby injuring investors.
The complaint filed in this class action alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Companys business, operations, and prospects. Specifically, Defendants failed to disclose to investors: (1) that the Company lacked adequate security measures to protect users data; (2) that the Company lacked the internal controls and procedures to detect unauthorized access to its systems and to its data; (3) that as a result, the Company would incur additional expenses and litigation risks; and (4) that, as a result of the foregoing, Defendants positive statements about the Companys business, operations, and prospects were materially false and/or misleading and/or lacked a reasonable basis.
If you purchased shares of Chegg during the Class Period, have information or would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Howard G. Smith, Esquire, of Law Offices of Howard G. Smith, 3070 Bristol Pike, Suite 112, Bensalem, Pennsylvania 19020 by telephone at (215) 638-4847, toll-free at (888) 638-4847, or by email to [email protected], or visit our website at www.howardsmithlaw.com.
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