San Francisco 49ers CEO Jed York is facing allegations of insider trading and securities violations, according to a report published Wednesday.
The San Francisco Chronicle reports that York faces two lawsuits involving his role on the board of an education technology company, Chegg Inc. The Bay Area company’s board has been hit with two lawsuits accusing board members of “gross mismanagement,” “unjust enrichment” and making false and misleading statements in SEC filings.
More specifically, York reportedly made $1.4 million in profit by selling 20,000 shares of Chegg stock at what a lawsuit labeled “artificially inflated prices.”
Founded in 2006, Chegg offers homework help and online tutoring, textbook rentals and other student services. However, the company has been embroiled in scandal the past couple of years after a number of colleges claimed the company openly aided students in cheating.
The Chronicle notes the lawsuits specifically address that issue, saying, “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.”
The lawsuits allege the board tried to cover up the cheating scandal. York has been a member of the Chegg board since 2013.
In a statement to the Chronicle, the 49ers said, “The 49ers are proud of the work we accomplished with Chegg to provide scholarships for first-generation students.”
NFL fans quickly reacted to the news.
Whoops. Go join Dan Snyder in the penalty box. Maybe Bezos and Jay Z will buy the team.
— Floyd Lawson Enterprises (@conservative804) August 9, 2023
A billionaire accused of insider trading? Never!
— Kyle Heidel (@KHeidel1) August 10, 2023
We know Bosa’s new contract will be expensive, but Damn Jed find other ways to get the money!
— Jonathan 49er Faithful (@Jpuma55) August 10, 2023
Wait, wasn’t the previous owner of the 49ers forced to step down under similar circumstances?
— Nanaki Skywalker (@NanakiSkywalker) August 10, 2023
Unsure how this relates to illegal insider trading, he sat on the board it’s well within his rights to sell stock though frowned upon.
— Joel Meloff (@Jmeloff) August 10, 2023
Jed York did nothing wrong
— 49ers BS (@49ersBs) August 10, 2023
Jed York is just keeping up with the family business like Eddie D did in the 90s
— Steven (@cashmahne) August 10, 2023
