Chegg sues Google for hurting traffic with AI as it considers strategic alternatives

Chegg seen at the New York Stock Exchange on Feb. 13, 2025. Chegg on Monday filed suit in federal district court against Google , claiming that artificial intelligence summaries of search results have hurt the online education company's traffic and revenue. The legal move come nearly two years after former CEO Dan Rosensweig said students engaging with OpenAI's ChatGPT assistant were cutting into Chegg's new customer growth. Chegg is worth less than $200 million, and in after-hours trading Monday, the stock was trading just above $1 per share. Chegg has engaged Goldman Sachs and will look at strategic options, including getting acquired and going private, President and CEO Nathan Schultz told analysts on a Monday earnings call. Chegg reported a $6.1 million net loss on $143.5 million in fourth-quarter revenue, a 24% decline year over year, according to a statement. Analysts polled by LSEG had expected $142.1 million in revenue. Management called for first-quarter revenue between $1 ... Read full article.