49ers CEO Jed York has various business interests. One of those business interests has sparked allegations of insider trading.
According to the San Francisco Chronicle, York faces multiple lawsuits arising from the activities of Chegg Inc. The litigation contends that Chegg helped students cheat on online exams. (Here’s an article from Forbes.com regarding the dynamic known as “chegging.”)
Per the Chronicle, the lawsuits claim that Chegg’s “revenue soared during the pandemic, as students learned they could use a Chegg account to get real-time answers to questions on college exams administered online.”
York is accused of, among other things, insider trading for dumping the company’s stock. York allegedly made $1.4 million in profit by selling 20,000 shares at “artificially inflated prices.”
In response to an inquiry from the Chronicle, the 49ers said this: “The 49ers are proud of the work we accomplished with Chegg to provide scholarships for first-generation students.” The Chronicle explains that the team did not address the questions about the lawsuits against York.
The company has denied the allegations.
York has served on the Chegg board of directors for 10 years. The company’s revenue reportedly skyrocketed during the pandemic.
Per the lawsuits, and as explained by the Chronicle, “students realized they could log into Chegg while taking a test and search the company’s database of academic exams — or even query an online Chegg tutor — for answers to test questions. Students then cut and pasted answers into their finals.”
If the allegations are proven, it’s the kind of thing that could get York scrutinized by the NFL’s Personal Conduct Policy. If, of course, there were a “higher standard” for owners. Or even the same standard as the one that applies to players.
UPDATE 8/10/23 11:54 a.m. ET: Chegg has forward a statement to PFT regarding the litigation. “The recent securities-related lawsuits against Chegg, and in certain cases its board of directors, are without merit and Chegg is vigorously defending itself,” a spokesperson said. “Chegg takes academic integrity very seriously and has invested significant resources to protect it. Chegg has been helping millions of students learn and thrive for many years, including during the pandemic, creating a transformative digital learning platform to improve outcomes.”