Major Settlement Proposed in Chegg, Inc. Securities Litigation Case Worth $55 Million

Proposed Settlement in the Chegg, Inc. Securities Litigation

In a significant legal development for investors, a proposed settlement in the Chegg, Inc. securities litigation has emerged, indicating a potential resolution for numerous shareholders. The settlement, which amounts to $55 million in cash, has been initiated under the guidance of lead plaintiffs represented by Saxena White P.A. and Motley Rice LLC. This settlement aims to address claims tied to allegations made against Chegg and certain individuals associated with the company during the class period of May 5, 2020, to November 1, 2021.

Key Details of the Settlement

The proposed settlement is designed to provide a mechanism for eligible investors to receive compensation, pending the court's approval. Those who purchased Chegg's common stock during the specified period may qualify as members of the settlement class. The settlement aims to resolve all claims against Chegg's executives, including CEO Daniel L. Rosensweig and other defendants.

A pivotal hearing regarding the settlement will take place on April 24, 2025, at the United States District Court for the Northern District of California. Lead Judge P. Casey Pitts will evaluate several aspects: whether the settlement is fair and reasonable, if it should be approved, and also assess the proposed plan for allocating the funds among eligible class members. Additionally, the court will review requests for attorney fees and reimbursement of litigation expenses proposed by the lead plaintiffs.

The court has documented these updates following an order allowing the class action to proceed for settlement purposes, and detailed notices have been issued to potential class members.

Action Steps for Investors

Investors who participated in the sale or acquisition of Chegg’s common shares within the defined class period are urged to exercise their rights, which may allow them to share in the settlement's proceeds. To be eligible for a cash award, affected shareholders need to submit a Claim Form by March 31, 2025. Those who wish to opt out of the settlement must submit an exclusion request by March 27, 2025, adhering to the instructions included in the official notice.

It’s crucial to note that failing to submit a Claim Form precludes an investor from receiving any settlement funds, although they will still be bound by court judgments made in this matter. Therefore, understanding the specifics and acting within the deadlines are essential for impacted investors.

Further Inquiries

Additional information regarding the settlement, including details on how to submit claims, may be found by visiting the official settlement website at www.CheggSecuritiesLitigation.com. Inquiries can also be directed to the claims administrator, A.B. Data, Ltd, or the lead counsel from Saxena White P.A. and Motley Rice LLC.

As this case continues to develop, affected shareholders are encouraged to stay informed and participate as necessary to secure their rights and potential compensation.