49ers news: Jed York accused of insider trading, Jimmy G to meet up with old friends
By Peter Panacy
49ers CEO Jed York might be under the microscope after lawsuits accused him of insider trading. Plus, Jimmy Garoppolo is back with the Niners... sort of.
San Francisco 49ers CEO Jed York frequently cited his uncle, former Niners owner Eddie DeBartolo Jr., as a big influence and mentor when it came to steering a franchise in the right direction.
Perhaps York learned some negative things, too.
In 1999, DeBartolo sold the team to his sister, Denise DeBartolo York, amid a gambling fraud scandal.
Now, it appears Jed York is potentially in trouble, at least allegedly.
Lawsuits accuse 49ers CEO Jed York of insider trading, securities violations
On Wednesday, an article in the San Francisco Chronicle by Lance Williams and Ron Kroichick broke down two lawsuits that are aimed at a group of individuals associated with Chegg, Inc., an online educational company located in the Bay Area. York is reportedly part of Chegg's board of directors.
The lawsuits claims York, along with others associated with Chegg, were involved with both insider trading and federal securities violations.
From the article:
"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 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 lawsuits claim that York, and others, sold stock prior to the cheating scandal with the understanding that the pandemic's driving of business would soon slow.
The Chronicle continued:
"The lawsuits claim the company knew cheating was driving student demand for Chegg accounts — and when the pandemic ended and students returned to classrooms, the demand was likely to decline."
It's important to understand that these are allegations via lawsuits, and Chegg has also denied the claims having any credibility.
Unfortunately for York, whose tenure as the 49ers' CEO has been rocky over the years, being back in the news under these circumstances isn't great.
Jimmy Garoppolo excited to practice with 49ers... as a Raider
The Niners are about to see an old friend this weekend when they engage in two joint practices with the Las Vegas Raiders before both teams' 2023 exhibition opener at Allegiant Stadium in Paradise, Nevada.
Quarterback Jimmy Garoppolo, who spent the last six seasons with San Francisco, joined the Raiders as a free agent last offseason, signing a three-year deal with the silver and black, one that didn't come without some controversy.
While Garoppolo isn't likely to play in the first preseason game of 2023, paralleling the 49ers' own likely decision to rest their starters, Jimmy G is looking forward to practicing against his old team while seeing some familiar faces.
"I'm excited, man. It'll be cool to see some familiar faces, players, coaches," Garoppolo told reporters, via Rohan Chakravarthi of 49ers Webzone.
Read more: ESPN predicts Jimmy Garoppolo lasts just 1 season with Raiders
A week ago, Niners cornerback Charvarius Ward told Mike Silver of the San Francisco Chronicle, ""Man I miss Jimmy. Jimmy’s a great guy, man, so charming and charismatic. His smile, the way he talks to you, he just makes you feel good. I’m definitely gonna intercept him next week, though."
That would be pretty entertaining.
The two teams will have their joint practices before playing each other in the first week of preseason action on Sunday, Aug. 13.
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