Chegg Inc.'s board and its auditors at Deloitte & Touche LLP are facing investor litigation over allegations that company leaders made millions on stock sales while keeping shareholders in the dark about a business model based on academic cheating.
The lawsuit accuses Chegg’s directors, with Deloitte’s help, of soliciting investor votes for important corporate decisions—such as the composition of its board and their compensation—with misleading claims about the company’s high ethical standards and its practice of “helping” students.
“The board omitted to mention that this ‘help’ involves facilitating cheating,” according to the proposed class action filed in Delaware’s Chancery Court. ...
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