Chegg Settles Securities Litigation for $55,000,000

If you purchased or otherwise acquired Chegg common stock between May 5, 2020, and November 1, 2021, you may be eligible to claim a portion of a class action settlement.

Chegg, Inc. has agreed to pay $55,000,000 to settle a class action lawsuit for allegedly misleading investors about the use of its platform during the COVID-19 pandemic.

Who can file a claim?

To be eligible for the settlement, you must meet the following criteria:

• Purchased or otherwise acquired Chegg common stock between May 5, 2020, and November 1, 2021
• Were allegedly damaged by these transactions (suffered losses)

Are there exclusions from the class?

The following individuals and entities are excluded from the class:

• Defendants and their officers or directors during the class period.
• Immediate family members of any defendant
• Any entity owned or controlled by any defendant during the class period

How much can class members get?

The settlement amount will be distributed among class members who submit valid claims. The average recovery per share is estimated to be $0.65 before deductions for fees and expenses.

The actual amount each class member receives will depend on:

• The number of valid claims submitted
• The number of shares purchased and sold during the class period
• The timing of these transactions

For example, if a class member purchased shares at an inflated price and sold them after the corrective disclosure, their recognized loss would be calculated based on the difference in inflation at the time of purchase and sale.

How to file a claim

To claim an award, class members must submit a claim form by March 31, 2025.

Claims can be filed online through the online claim form or by downloading a PDF claim form and mailing it to the claims administrator.

Claim form mailing address: Chegg Securities Litigation, c/o A.B. Data, Ltd., P.O. Box 173024, Milwaukee, WI 53217

What are the required documents?

Caimants must provide documentation of their transactions in Chegg common stock, such as broker confirmations or other transaction records.

Claim instructions

Follow these steps to submit your claim:

1. Gather all necessary documentation of your Chegg stock transactions.
2. Complete the claim form with accurate information.
3. Submit the form online or mail it to the claims administrator by the deadline.

Payment methods

Payments will be made via check to the address provided in the claim form.

$55 Million settlement fund

The settlement fund of $55,000,000 will cover:

• Payments to class members who submit valid claims
• Attorneys' fees of up to 25% of the settlement fund ($13,750,000)
• Reimbursement of litigation expenses up to $490,000
• Any remaining funds will be distributed pro rata among claimants

Important dates

• Fairness Hearing: April 24, 2025
• Deadline to File a Claim: March 31, 2025

When is the Chegg Securities Litigation payout date?

The court will hold a fairness hearing on April 24, 2025, to determine whether to approve the settlement. If approved, payments will be processed after the resolution of any appeals.

Why is there a class action settlement?

The lawsuit alleges that Chegg made false and misleading statements about the use of its platform during the COVID-19 pandemic, which artificially inflated its stock price. The settlement avoids the uncertainty and expense of further litigation.