Chegg Inc. investors may proceed with claims that the education company falsely touted its growth during the Covid-19 pandemic by downplaying the role of the remote learning environment and cheating, a federal court ruled.
The investors offered substantial evidence supporting their allegations that cheating on at-home tests through Chegg’s “Expert Q&A” online tutoring service was a driver of subscriber and revenue growth, Judge P. Casey Pitts said Monday for the US District Court for the Northern District of California.
The investors also showed the necessary level of intent, Pitts said, rejecting Chegg’s argument that its leadership believed the pandemic had ...
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