PHILADELPHIA, Sept. 15, 2022 (GLOBE NEWSWIRE) — Kaskela Law LLC announces that it is investigating Chegg, Inc. (“Chegg” or the “Company”). CHGG on behalf of the long-standing shareholders of the company.

A securities fraud complaint was recently filed against Chegg on behalf of investors who purchased shares of the Company’s common stock between May 5, 2020 and November 1, 2021, alleging to investors a number of false and/or misleading statements as to the primary reasons for the success of the company that dramatically increase subscribers, growth and revenue.

Specifically, the defendants allegedly falsely claimed that the company was “in a unique position to impact the future of the higher education ecosystem” and that the primary reason for the company’s success was “[o]Our strong brand and momentum” that would allow Chegg to “continue to grow and capitalize on the ever-expanding opportunities in the learning economy.” However, the lawsuit also alleges, as the defendants knew at the same time: (i) that Chegg’s The increase of Subscribers, growth and revenue was a temporary impact of the COVID-19 pandemic, which resulted in distance learning for the vast majority of US students and (ii) that the company’s platform helped students cheat on their exams. The complaint details how “Chegg had no basis to believe that the extraordinary but temporary growth trends would continue, but failed to adequately inform investors of this reality.”

On November 1, 2021, Chegg reported its financial and operating results for the first quarter in which students in the United States returned to campus. As detailed in the complaint, Chegg stunned investors at the time with fewer than expected filings and declined to provide guidance for 2022. Following this disclosure, Chegg common stock fell $30.64 per share, or nearly 50% of its value, to close…