Jed York has been involved with the San Francisco 49ers since 2005. But Wednesday’s news involving him involves allegations of insider trading.
Jed York Was Involved in Cheating Scam, Report Says
Per The San Francisco Chronicle’s Ron Kriochik and Lance Williams, York is facing multiple lawsuits and is alleged to be a part of insider trading and federal securities violations.
His accusations stem from his involvement with the activities of Chegg Inc. Part of the report from The Chronicle states that York was involved in a cheating scam on tests at the college level.
“In two shareholders’ lawsuits, York and other directors of Chegg Inc. stand accused of concealing the company’s role in helping college students cheat on online exams,” the report read, which included involvement during the COVID-19 pandemic.
“The company’s 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 claim.”
The story further explains how York is accused of insider trading for dumping the company’s stock. He is also alleged to have made $1.4 million in profit by selling 20,000 shares at what was described as “artificially inflated prices.”
49ers and Chegg Respond to Report
Chegg is known as an American education technology company with the mission of helping improve grades — which includes providing physical and individual textbooks. The company maintains an honor code policy per their website, and their products are not to be used for cheating or fraud.
A Chegg spokesperson provided this statement to The Chronicle:
“Chegg takes academic integrity very seriously and has invested significant resources to protect it,” they said. “Chegg has been helping millions of students learn and thrive for many years, including during the pandemic, creating a transformative digital learning platform to improve outcomes.”
The Niners, meanwhile, responded with the succinct statement:
“The 49ers are proud of the work we accomplished with Chegg to provide scholarships for first-generation students.”
York Has Been Involved With 49ers Since Childhood
York is a longtime name around the 49ers, dating back to the franchise’s years at Candlestick Park.
York’s mother, Debbie, officially took control of the franchise in 1999. She took the reins following the falling out of her brother and former 49ers owner Eddie DeBartolo and his gambling fraud scandal.
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York, 43, started as the 49ers’ director of strategic planning in 2005. Three years later, he was elevated to team president. His parents remained principal owners during his transition to president.
He also ventured into soccer by becoming co-owner of the Sacramento Republic FC of the United Soccer League in 2015. He remains in a co-ownership role.
York, meanwhile, has been involved with Chegg for 10 years as part of the company’s board of directors, per The Chronicle.
