(Bloomberg) -- Educational publishing giant Pearson Plc sued Chegg Inc. for selling students the answers to chapter-end questions in its textbooks.
Chegg shares dropped a total of 4.2% on Monday and Tuesday.
According to the suit filed in federal court in New Jersey, Chegg violated copyright law by selling answer sets to Pearson textbooks through its “Chegg Study” website. The site claims it has answers to questions in 9,000 textbooks. Pearson accused Chegg of earning most of its income from selling answers.
“By using and copying Pearson’s original creative content to make answer sets based on that content, Chegg infringes Pearson’s exclusive rights as a copyright holder, including the rights of reproduction, preparation of derivative works, and distribution,” Pearson said in the complaint. “If, when, and how Pearson provides answer sets to its textbook questions is a right owned by Pearson that Chegg usurped for itself.”
Chegg’s press office didn’t immediately respond to an email seeking comment on the suit.
Pearson is seeking an order stopping Chegg’s alleged copyright infringement and unspecified damages.
The case is Pearson Education Inc. v. Chegg Inc., 21 cv 16866, U.S. District Court, District of New Jersey (Newark).
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