San Francisco 49ers CEO Jed York is in some hot water after being accused of insider trading, and violating federal security laws, in two lawsuits from shareholders of the online education company – Chegg.
York has been a Chegg board member since 2013 while his family has owned the 49ers for years.
The lawsuit alleges that the “company materially misstated information to keep the stock price inflated” and “before the scheme was exposed,” board members sold their stock at the “artificially inflated price.”
York is accused of making around $1.4 million from selling his shares at the height of the cheating scandal.
The NFL declined to comment.
Chegg denies the allegations made in the suit.
“We strongly reject the claims made in securities-related lawsuits against Chegg, including specific allegations against our Board of Directors, which are wholly unfounded,” a spokesperson wrote in an email to SFGATE. “Chegg is actively and resolutely defending against these baseless claims in official court filings.”
