CHEGG, INC. Securities Lawsuit Investigation

Shamis & Gentile P.A., a law firm that advocates for investors who are victims of securities fraud, is investigating potential claims against CHEGG, INC. (CHGG)

If you purchased or otherwise acquired Chegg securities between August 5 and October 27, 2025, and suffered losses, you may be eligible to join this securities investigation and seek compensation.

About CHEGG

Chegg is an educational technology company that provides online learning services and academic support for students. The company is known for its digital platform, which offers study tools, textbook rentals, and other educational resources.

Potential Concerns Under Investigation

Attorneys are reviewing whether Chegg, Inc. and certain executives made false or misleading statements or failed to disclose material information between August 5, 2025, and October 27, 2025.

During this period, the company allegedly expressed confidence in its restructuring strategy and AI transformation. On August 5, 2025, Chegg reported second-quarter results that exceeded guidance, stating, “We had a good Q2, exceeding our guidance,” while highlighting cost savings and AI initiatives as stabilizing factors.

Management reaffirmed expectations to achieve non-GAAP expense savings of $165 to $175 million in 2025 and $100 to $110 million in 2026, suggesting strong execution on long-term goals.

However, those assurances were called into question on October 27, 2025, when Chegg announced a major restructuring. The company revealed plans to eliminate approximately 388 jobs (about 45% of its workforce), reinstate former CEO Dan Rosensweig, and end its ongoing strategic review. In the same disclosure, Chegg stated that “the new realities of AI and reduced traffic from Google to content publishers have led to a significant decline in Chegg’s traffic and revenue.”

The next day, Chegg’s stock fell 13.2%, from a closing price of $1.44 on October 27 to $1.25 on October 28, 2025, following the restructuring announcement and leadership change. The decline followed the revelation of large-scale layoffs, signaling that the company’s operational problems may have been more severe than prior statements suggested.

Lawyers are investigating whether Chegg adequately disclosed the impact of generative AI and Google traffic losses on its core business, and whether its public guidance accurately reflected internal performance data.

Your Rights and Next Steps

This is an ongoing investigation and not a filed lawsuit. Investors who purchased or otherwise acquired Chegg securities between August 5, 2025, and October 27, 2025, and suffered losses may have legal rights. If evidence shows that investors were misled, the case could lead to a class action lawsuit to recover damages for affected shareholders.

Lawyers are available to help investors review their options and determine whether they qualify to participate. There is no cost or obligation to join the investigation, and participation is confidential.

You May Be Entitled to Compensation

Securities investigations are time-sensitive, and acting promptly can help preserve your rights. If you purchased or acquired Chegg securities during the relevant period, you may be eligible to seek compensation for your losses.

To get started, complete the form below to join the investigation.