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

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 are accused of falsely claiming 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 opportunity in the learning economy.” However, the complaint also alleges that the defendants were simultaneously aware of: (i) that Chegg’s rise 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. In summary, the complaint states that “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. Pursuant to this disclosure, Chegg’s common stock will…