In early August, The San Francisco Chronicle reported that San Francisco 49ers CEO Jed York is facing two lawsuits over his role on the board of an education technology company, Chegg Inc.
The lawsuits accuse the company’s board members of “gross mismanagement,” “unjust enrichment” and making false and misleading statements in SEC filings.
York is specifically accused of making $1.4 million in profit by selling 20,000 shares of Chegg stock at what a lawsuit labeled “artificially inflated prices.” It says York made those moves based on “nonpublic information,” showing “his motive in facilitating and participating in the scheme.” In other words, he has been accused of insider trading.
York broke his silence on the insider trading allegations against him, claiming that they are “completely frivolous.”
“It’s 18 months old. It’s a completely frivolous lawsuit,” York told NBC Sports Bay Area before Saturday’s preseason game between the 49ers and Denver Broncos. “I think they’re grasping at straws to bring this out publicly now.”
York added that he is proud of the work he’s done with Chegg and thinks the issue will be remedied soon.
“I’m proud of our work with Chegg, proud of my work on the board and with its scholarship program,” York added. “I have no doubt this will be taken care of in no time.”
