San Francisco 49ers CEO Jed York is facing two lawsuits accusing him of insider trading and violations of federal securities laws related to his role on the board Santa Clara-based education company Chegg, the San Francisco Chronicle reported Wednesday.
The suits allege the Chegg board of engaging in “gross mismanagement,” “unjust enrichment” and making false and misleading statements in filings to the SEC. The claims stem from a cheating scandal that the Chegg board is accused of covering up.
The Chronicle reports that the company helped college students cheat on online exams, which played a key role in Chegg’s revenue spike during the pandemic when many college exams were being administered online. The suits claim that, following the pandemic’s end and a return to the classroom for in-person exams, the company’s revenue and stock price plummeted.
