Jed York dumped 20,000 shares of stock at a time the lawsuit claims its price was inflated due to false statements.
San Francisco 49ers CEO Jed York and others are at the center of a pair of lawsuits accusing them of engaging in insider trading at Chegg Inc., a Santa Clara-based online education platform under fire for allegedly helping students cheat during the height of the pandemic.
Started in 2006, Chegg debuted on the New York Stock Exchange in 2013 — the same year York joined its board of directors — at $12.50 a share, raising $187.5 million for its initial public offering. The lawsuits claim Chegg’s design “enabled the company to monetize off its platform’s capacity to assist in academic cheating” and that Chegg failed to acknowledge that when students returned to the classroom, the opportunity to use the service to cheat would “diminish” and result in declining revenues.
During the period when stock prices were considered inflated, Rosenweig sold 552,000 shares of stock at average prices ranging from $63.81 to $99.55 a share, resulting in a profit of $48.8 million. Around the same time, York sold 20,000 shares of stock — 10,000 on July 1, 2020, and another 10,000 on Oct. 1, 2020 — for a profit of $1.4 million, according to the lawsuits.
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