Chegg, Inc. (CHGG) Accused of Failing to Maintain Sufficient Data Security Measures

According to the complaint against the company's officers and directors for alleged violations of the Securities Exchange Act of 1934 between July 30, 2018 and September 25, 2018, Chegg announced impressive financial growth and raised full year 2018 guidance. That same month, Chegg acknowledged in an SEC filing that computer malware, viruses, hacking, phishing attacks, and spamming could harm its business. On September 25, 2018, Chegg revealed that an unauthorized party had gained access in April 2018 to approximately 40 million users' data. In the massive security breach, usernames, email addresses, shipping addresses, and hashed Chegg passwords had been compromised. On this news, Chegg's stock fell over 12%, closing at $28.42 on September 26, 2018, and has since fallen even further.

Chegg, Inc. (CHGG) Shareholders Have Legal Options

Concerned shareholders who would like more information about their rights and potential remedies can please send us a message via the Shareholder Information form below.