49ers CEO Jed York has found himself at the center of a lawsuit filed against him in connection with Chegg Inc. However, he is dismissing the claims as a frivolous lawsuit. The lawsuit, which is 18 months old, accuses York of using nonpublic information to sell the company’s stock before its price dropped.
In a joint interview with the San Jose Mercury News and NBC Sports Bay Area, York expressed his belief that the lawsuit is completely without merit. He suggests that the plaintiffs are grasping at straws by bringing this case into the public eye now.
Despite York’s dismissal of the lawsuit, he acknowledges that if it is indeed frivolous, it will likely be swiftly dealt with through the legal process. However, if there is substance to the claims, the case will proceed to trial unless a settlement is reached.
“I’m proud of our work with Chegg, proud of my work on the board and with its scholarship program,” York stated. “I have no doubt that this will be taken care of in no time.”
It is worth noting that declaring a lawsuit to be frivolous is a common response from defendants in civil cases, even when there may be legitimate grounds for the claims. The final determination of whether York acted wrongly or not will be left to the legal process.
In the meantime, York has various options available to him under California law if he believes that he is being wrongfully targeted by a malicious lawsuit.
As the legal battle unfolds, it remains to be seen how this lawsuit against York will ultimately be resolved.