Chegg Agrees to Settle Investor Growth Suit for $55 Million (1)

Chegg Inc. has agreed to pay investors $55 million to settle claims that it falsely touted the sustainability of its online tutoring growth, the shareholders said in a request for court approval.

The deal to end the proposed class action, which alleges the textbook rental and tutoring company downplayed the role of the remote learning environment and cheating, is fair and reasonable, the investors told the US District Court for the Northern District of California Wednesday.

• “Chegg is a learning platform and not a cheating platform,” the company said after Judge P. Casey Pitts denied its request for dismissal in ...