Report: 49ers CEO Jed York being sued for alleged insider trading, securities violations
SAN FRANCISCO -- San Francisco 49ers CEO Jed York is facing two lawsuits stemming from his connection on the board of a Santa Clara-based educational company, according to the San Francisco Chronicle.
Specifically, York is being sued for alleged insider trading and violations of federal securities. York, along with other directors of Chegg Inc. have been accused of concealing the company's role in aiding college students cheat on online exams. The lawsuits claim that students used a Chegg account to get instant answers to questions on college exams administered online, thus leading to the company's revenue rising immensely during the pandemic.
The company's revenues and stock market price took a massive hit when the pandemic, however, when colleges got back to in-person testing, according to the lawsuits. The company's stock currently trades at under $11, a massive drop from its February 2021 peak of $113.51.