CHEGG, INC. Securities Fraud Investigation

Shamis & Gentile, P.A. is investigating claims on behalf of investors of CHEGG, INC. ("Chegg" or the "Company") (CHGG). Impacted investors are advised to contact the firm now.

The law firm is investigating whether Chegg and certain of its officers and directors made misrepresentations or failed to disclose material information regarding the Company’s financial condition, restructuring plans, and exposure to generative artificial intelligence (“AI”) and reduced Google traffic between August 5 and October 27, 2025.

On August 5, 2025, Chegg reported second-quarter results that exceeded guidance, with management stating, “We had a good Q2, exceeding our guidance,” and reaffirming expectations to achieve non-GAAP expense savings of $165 to $175 million in 2025 and $100 to $110 million in 2026. Executives described these savings as evidence of cost-saving and expense discipline as they continued progress toward long-term goals. However, those assurances appeared inconsistent with the Company’s later disclosures.

On October 27, 2025, Chegg announced a major restructuring that included the elimination of approximately 388 jobs (about 45% of its workforce), the reinstatement of former CEO Dan Rosensweig, and the conclusion of its strategic review, stating that the Company would remain a standalone public entity. 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.”

Following this news, Chegg’s stock price fell 13.2%, declining from $1.44 per share on October 27 to $1.25 per share on October 28, 2025, resulting in significant losses to investors.

If you purchased or otherwise acquired Chegg (CHGG) securities between August 5 and October 27, 2025, you may be eligible to seek compensation for losses. Contact Shamis & Gentile, P.A. today to discuss your options.

Shamis & Gentile, P.A. stands out as an advocate for investors who are victims of securities fraud. The firm is committed to securing recoveries for investors who have incurred damages due to false and misleading statements or other corporate misconduct by public companies. Shamis & Gentile has recovered over $1 billion for consumers nationwide. Its extensive experience, expertise and resources enable the firm to resolve disputes in a wide range of matters, including class actions, mass torts and mass arbitrations.

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