Robbins Geller Rudman & Dowd LLP announces an investigation into potential violations of U.S. federal securities laws by Chegg, Inc. (NYSE: CHGG) focused on whether Chegg and certain of its top executive officers made false and misleading statements and/or failed to disclose material information to investors.
If you have information that could assist in this investigation or if you are a Chegg investor who suffered a loss and would like to learn more, you can provide your information here:
THE COMPANY: Chegg is an education technology company that provides homework help, digital and physical textbook rentals, textbooks, online tutoring, and other student services.
THE REVELATION: On May 1, 2023, Chegg CEO Dan Rosensweig revealed that “since March [Chegg] saw a significant spike in student interest in ChatGPT,” the artificial intelligence chatbot developed by OpenAI. Rosensweig further disclosed that “[w]e now believe [ChatGPT is] having an impact on our new customer growth rate.” Chegg further announced that it was suspending its full-year outlook due to uncertainty of the impact on results. Following the announcement, the price of Chegg stock declined more than 48%.
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