Jed York is in some legal hot water as he has been accused of insider trading while he’s also thought to be involved in another cheating scandal.
York, the CEO of the San Francisco 49ers, joined the franchise as president after his parents transitioned to the positions of co-chairmen. Jed is the son of owners John and Denise DeBartolo York.
He is also a board member of Chegg, an online educational tech company.
According to The San Francisco Chronicle’s Lance Williams and Ron Kroichickan, the 43-year-old has been hit with two lawsuits, the first of which accuses him of insider trading and violations of federal securities laws. This allegation ties in his position on the Chegg board.
The second one states that “York and other directors of Chegg Inc. stand accused of concealing the company’s role in helping college students cheat on online exams.”
The aforementioned publication is reporting that Chegg’s stock went up during the pandemic due to students turning to them for real-time answers to aid with their online exams. It’s understood that the stock price crashed after colleges reopened their doors given that students went back to writing physical tests and could no longer use the technology to cheat.
Click on ‘Follow Us’ and get notified of the most viral NFL stories via Google! Follow Us
“The civil suits accuse the Chegg board of ‘gross mismanagement,’ ‘unjust enrichment’ and making false and misleading statements in SEC filings in connection with Chegg’s ‘schemes’ to profit from the cheating scandal,” the report notes.
The legal documents also claim that the CEO used his position for insider trading purposes and made $1.4 million in profit by selling 20,000 shares at prices that were artificially inflated.
